Problem $1-61($LO $1-4)($Static$)$

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Brown Thumb Landscaping is a calendar$-$year, accrual$-$method taxpayer. In September, Brown Thumb negotiated a $$14,000$ contract for services it would provide to the city in November of the current year. The contract specifies that Brown Thumb will receive $$4,000$ in October as a down payment for these services, and it will receive the remaining $$10,000$ in January of next year.

Problem $1-61$ Part$-$c $($Static$)$

c$.$ Suppose that the total amount to be paid under the contract with the city is estimated at $$14,000$ but may be adjusted to $$12,000$ next year during the review of the city budget. What amount from the contract, if any, should Brown Thumb recognize as income this year?