Select from the option list provided the time at which the income should be recognized by the taxpayer for each transaction below. Each choice may be used once, more than once, or not at all.ItemAnswer1.Stanreceived$80,000tonotcompeteintheareaoverthe next 10 years as part of the sale of his profitable retail store.2. Anne bought an old house a year ago. This year, she discovered an original Van Gogh painting in the attic worth $150,000.3. A merchandiser receives prepayment for goods on December 30, Year 1. The goods are shipped to the customer January 3, Year 2.4. Donald, an accrual method taxpayer, sells merchandise on commission. His employer advanced him $15,000 in future commissions.