How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer?
a. The company guarantees its products for six months. At the end of 2014, customers had made valid claims for $600,000 that were not paid until 2015. Also, the company estimates that another $400,000 in claims from 2014 sales will be filed and paid in 2015.
b. The accrual basis taxpayer reported $200,000 in corporate taxable income for 2014. The state income tax rate was 6%. The corporation paid $7,000 in estimated state income taxes in 2014 and paid $2,000 on 2013 state income taxes when it filed its 2013 state income tax return in March 2014. The company filed its 2014 state income tax return in March 2015 and paid the remaining $5,000 of its 2014 state income tax liability.
c. An employee was involved in an accident while making a sales call. The company paid the injured victim $15,000 in 2014 and agreed to pay the victim $15,000 a year for the next nine years.