Maroon Corporation expects the employees' income tax rates to decrease next year. The employees use the cash method. The company presently pays on the last day of each month. The company is considering changing its policy so that the December salaries will be paid on the first day of the following year. What would be the effect on an employee of the proposed change in company policy for paying its salaries beginning for December 2012.
A) The employee would be required to recognize the income in December 2012 because it is constructively received at the end of the month.
B) The employee would be required to recognize the income in December 2012 because the employee has a claim of right to the income when it is earned.
C) The employee will not be required to recognize the income until it is received, in 2013.
D) The employee can elect to either include the pay in 2012 or 2013.
E) None of the above.