Question Content Area

Bearcat Corporation is an accrual basis calendar year taxpayer and it sells personal security services to businesses under four year contracts. Bearcat sold a four year contract to Western Corporation for $$4,800$ on December $1,2023.$ How much income will Bearcat be required to include on their tax return in the $2023$ tax year and the $2024$ tax year?

$$100$ in $2023$ and $$4700$ in $2024$

None in $2023$ and $$4800$ in $2024$

$$4800$ in tax year $2023$ and nothing in $2024.$

$$100$ in $2023$ and $$1200$ in $2024$