Question $2(1$ point$)$

A business may recelve advances for goods or services to be dellvered or services to be provided in a subsequent faxation year. How are these odvances treated for income fax pupposes?

$$ Included in income in the taxation year in which the advance is recelved

$$ Alocated to income over the period between the time the cash is recelved and Fie

time the goods and services are dellvered or services are provided

$0$

$$ Included in income within $180$ days of the end of the faxation year