On September $30,2018,$ Stalling, Incorporated issued $2,000$ shares of its publicly traded stock as compensation to its employee, Harry. On the date of issuance, the stock's fair market value was $$40,000.$ Under the terms of his $2018$ compensation contract, Harry could not dispose of the stock before October $1,2023,$ and if employment with Stalling was terminated before that date, the stock is returned to the corporation. On October $1,2023,$ Harry, who still worked for Stalling, sold all $2,000$ shares for $$57,500.$ Stalling, Incorporated uses a fiscal year ending August $31$ for tax purposes.

Required:

Determine the amount of Stalling's deduction and the taxable year in which Stalling is allowed the deduction with respect to the $2,000$ shares issued to Harry if:

a$.$ Harry made no election with respect to the restricted stock in $2018.$

b$.$ Harry filed a timely election in $2018$ to accelerate income recognition with respect to the $2,000$ shares of restricted stock.

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Determine the amount of Stalling's deduction and the taxable year in which Stalling is allowed the deduction with respect to the $2,000$ shares issued to Harry if Harry made no election with respect to the restricted stock in $2018.$