Taxpayer (TP) is a cash basis taxpayer for tax purposes with a calendar year end. TP is an accrual basis taxpayer for financial statement purposes also with a calendar year end. TP receives $100,000 cash on Dec. 31, 2014 for payment of services to be rendered. As a result:

a. TP recognizes $100,000 of income for tax purposes, but does not recognize income for financial statement purposes.

b. TP is prohibited from maintaining accounting records differently from tax records resulting in criminal liability under the tax law

c. TP does not recognize $100,000 of income for tax purposes, but does recognize income for financial statement purposes.

d. None of the other choices are correct.