Steven operates a landscaping service on the accrual method. In September of this year Steven received a payment of $18,000 for 24 months of landscape services ($750 per month commencing on December 1st of this year). When must Steven recognize the income if his accounting methods are selected to minimize income recognition?

A.

$1,500 is recognized in this year, $16,500 next year

B.

$1,500 is recognized this year, $9,000 next year, and $7,500 in the last year of the contract

C.

$18,000 is recognized this year

D.

$9,000 is recognized this year and $9,000 next year

E.

$750 is recognized in this year and $17,250 next year

2-

In the current year, Wilson (who files as a head of household) reported regular taxable income of $152,000. He itemized his deductions, deducting $18,000 in charitable contributions and $2,000 in state income taxes. What is Wilson's alternative minimum taxable income?

	A.	$164,000
	B.	$154,000
	C.	$152,000
	D.	$172,000
	E.	$170,000