Chicago Cleaning Services Provides Nightly Janitorial Services at a Monthly

Chicago Cleaning Services provides nightly janitorial services at a monthly rate of $300.Customers have three payment options:
If Chicago Cleaning is an accrual basis taxpayer:

I.All cash payments are taxable when they are received.
II.One-year advance payments must be included in income in the year they are received.
III.Two-year advance payments attributable to service in two years;hence,must be included in income in the year they are received.
IV.One-year advance payments may be deferred: $280 would be included in income for each month of service provided.
​

A) Only statement I is correct.
B) Only statement II is correct.
C) Only statement III is correct.
D) Only statements II and III are correct.
E) Only statement IV is correct.