Discussion Question $4-6($LO$.2)$

On December $29,2024,$ an employee received a $$5,000$ check from her employer's client. The check was payable to the employer. The employee did not remit the funds to the employer until December $30,2024.$ The employer deposited the check on December $31,2024,$ but the bank did not credit the employer's bank account until January $2,2025.$

Complete the statement below regarding when the cash basis employer is required to include the $$5,000$ in gross income.

In $$ because a check received $$ :onsidered a cash equivalent and a cash basis taxpayer must recognize the income when the check is