Alexis, a cash basis contractor, builds a storage building for Jones. The building is completed, and the bill is given to Jones. Jones pays $60,000 in 2017 . Subsequently, Jones files suit for damages based on alleged faulty construction. Alexis required to recognize $60,000 of income in 2017 based upon
I. Constructive Receipt Doctrine.
II. Claim-of-right Doctrine
a. Only statement I is correct
b. Only statement II is correct
c. Both statements are correct
d. Neither statement is correct
b
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