Choose whether the following statement is true or false: "Jim received a $500 refund of state income taxes this year. Jim will not need to include the $500 in his gross income this year if he did not deduct state income taxes last year."Your answer:Briefly explain your rationale:Argon is a plumber who uses the cash method of accounting. This year Arron requested that his clients make their checks payable to his son, Feng. This year Feng received checks in the amount of $70,750 for Argon's plumbing services. Which of the following is a true statement?a. Aroon is taxed on $70,750 of plumbing income this year.b. Feng is taxed on $70,750 of plumbing income this year.c. Feng is taxed on $70,750 of income from gifts received this year.d. Argon may deduct the $70,750 received by Feng.e. None of the choices are correct.Your answer: ABriefly explain your rationale:Choose whether the following statement is true or false: "Constructive receipt represents the principle that cash-basis taxpayers will be taxed on income when it is made available to them without substantial restrictions."Your answer: