(L02) Juliette received \(\( \$ \) 12,000\) in income in Year 4 under a contract with a customer who paid her. In Year 5, a contractual dispute arose between Juliette and her customer. The dispute was resolved, and Juliette returned the \(\( \$ \) 12,000\) of income to the customer in Year 5.

a. Does Juliette have income in Year 4?

b. Can Juliette take a deduction of \(\( \$ \) 12,000\) in Year 5?