Fred, a cash basis taxpayer, received a $15,000 bonus from his employer in 2017. The bonus was based on the company’s profits for 2016. In 2018, the company discovered that its 2016 profits were computed incorrectly. As a result, Fred received an additional $10,000 with respect to 2016 profits. Fred’s marginal tax rate in 2017 was 15%, and it was 35% in 2018. Sue, also a cash basis taxpayer, received a $35,000 bonus in 2018 that was based on 2017 profits. In 2018, the company discovered that it had overstated its profits in 2017. As a result, Sue was required to repay $10,000 of her bonus in 2018. Sue was in the 35% marginal tax bracket in 2017 and in the 15% marginal bracket in 2018. What special tax treatment is available to Fred and Sue as a result of their employer’s errors?