This year Elizabeth agreed to a three$-$year service contract with an engineering

consulting firm to improve efficiency in her factory. The contract requires Elizabeth to

pay the consulting firm $$1,150$ for each instance that Elizabeth requests its assistance.

The contract also provides that Elizabeth only pays the consultants if their advice

increases efficiency as measured $12$ months from the date of service. This year Elizabeth

requested advice on three occasions, and she has not yet made any payments to the

consultants.

Note: Leave no answers blank. Enter zero if applicable.

a$.$ How much should Elizabeth deduct this year under this service contract if she uses the accrual method

of accounting?

Deductible amount

b$.$ How much should Elizabeth deduct this year under this service contract if she uses the cash method of

accounting?

Deductible amount