Teal company is an accrual basis taxpayer. On December 1, 2019, a customer paid Teal for an inventory item that was on hand, but the customer wanted the item delivered in early January of 2020. Teal delivered the item on January 4, 2020. Teal included the sale in its 2020 income for financial accounting purposes. For tax purposes:

a. Teal must recognize the income in 2019.

b. Teal must recognize the income in the year title to the goods passed to the customer, as determined under the laws of the state in which the store is located.

c. Teal can elect to recognize the income from this prepayment in either 2019 or 2020.

d. Teal must recognize the income in 2020.

e. Teal must recognize the income in the same year as it does for financial accounting purposes.