Your client T (a calendar year, cash method taxpayer) received a $150,000 check for his annual bonus just before midnight at the company New Years Eve party on December 31, Year 1. Much to his dismay, he learned upon returning to work on January 2 that a mistake was made in calculating his bonus and that he should have received only $100,000. T repaid the $50,000 excess in Year 2. Ts marginal tax rates for Year 1 and Year 2 were 37% and 25%, respectively. 1. Would T be required to include any of the bonus as income in Year 1? If so, how much, and why? 2. Which section of the Code would govern the determination of Ts tax liability for Year 2 with respect to the bonus? 3. Assume that Ts taxable income in Year 2 was $300,000 (determined without taking into account the fact that he repaid, in Year 2, $40,000 of the bonus he received in Year 1). Determine Ts tax liability for Year 2.