Taxpayer is a securities firm which uses the accrual method of accounting. Taxpayer executes stock trades and performs settlement functions. Settlement functions include recording the sale and confirming it with the customer. Trades made on December 28, 2013, until the end of the month are not settled until January of 2014. Taxpayer made $1,000,000 of net commissions from these trades in late December. Since the security is not credited to the customer's account until settlement date, taxpayer wants to declare the income on the settlement dates in 2014. Taxpayer does not receive the money until January 2014. Advise the taxpayer which is the proper period of recognition by preparing a formal tax memo.