Platinum should report $$30,000$ book income $(6$ months $$ $$5,000[$$$120,00024$ months$])$ and $$30,000$ taxable income in $2023($since the $1-$year deferral method applies for prepaid services and taxable income includes only the amount earned for the first year$).$

Platinum should report $$60,000$ book income $(12$ months $$ $$5,000[$$$120,00024$ months$])$ and $$90,000$ taxable income in $2024($since the $1-$year deferral method applies for prepaid services and taxable income includes the remaining prepaid income $[$$$120,000-$ $$30,000$ taxed in $2023]).$

Platinum should report $$30,000$ book income $(6$ months $$ $$5,000[$$$120,00024$ months$])$ and $$0$ taxable income in $2025($since the $1-$year deferral method applies for prepaid services and all of the prepaid income was recognized in $2023$ and $2024).$