In 2007, Potrus, an accrual basis corporate taxpayer, received a $40,000 advance for a collection of eight lectures by numerous staff for the Artwork Institute. After delivering 5 lectures, the collection was cancelled for poor attendance. Potrus refused to return any of the advance fee, so the Artwork Institute sued. In 2008, Potrus was ordered by the courtroom to repay $15,000. Potrus’s web revenue was $426,000 in 2007 and $298,000 in 2008. How ought to Potrus deal with the reimbursement to acquire the perfect tax outcome?

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