On April 1 of year 0 Stephanie received a $9,000 payment for full payment on a three-year service contract (under the contract Stephanie is obligated to provide advisory services for the next three years).

a) What amount of income should Stephanie recognize in year 0 if she uses the accrual method of accounting (she recognized $2,250 for financial accounting purposes)?

b) What amount of income will Stephanie recognize in year 1 if she uses the accrual method of accounting?

c) What amount of income will Stephanie recognize in year 2 if she uses the accrual method of accounting?

d) What amount of income will Stephanie recognize in year 0 if she recognizes

$5,000 of income from the contract for financial statement purposes?