With respect to the prepaid income from services, which of the following is true?

1. The treatment of prepaid income is the same for tax and financial accounting.

2. A cash basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed by the end of the tax year following the year of receipt.

3. An accrual basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed by the end of the tax year following the year of receipt.

4. An accrual basis taxpayer can spread the income over the period services are to be provided on a contract for three years or less.

5. None of the above.