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 2016, customers had made valid claims for $600,000 that were not paid until 2017. Also, the company estimates that another $400,000 in claims from 2016 sales will be filed and paid in 2017.
b. The accrual basis taxpayer reported $200,000 in corporate taxable income for 2016. The state income tax rate was 6%. The corporation paid $7,000 in estimated state income taxes in 2016 and paid $2,000 on 2015 state income taxes when it filed its 2015 state income tax return in March 2016. The company filed its 2016 state income tax return in March 2017 and paid the remaining $5,000 of its 2016 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 2016 and agreed to pay the victim $15,000 a year for the next nine years.