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Zenith Tech, a sole proprietor, signs a written two-stage contract for software integration services with a client. Total contract price PHP 3,000,000. Stage 1: feasibility study and prototype, PHP 1,000,000; Stage 1 is completed on June 15, 2024; Stage 1 payment of PHP 1,000,000 is due by June 30, 2024. Stage 2: deployment and ongoing support, PHP 2,000,000; Stage 2 is completed on December 15, 2024; Stage 2 payment due by January 15, 2025. For accrual-basis accounting under the NIRC (all-events/earned-right concept), and for cash-basis accounting if elected, choose the statement that best reflects the realization and recognition outcomes. (a)State the controlling doctrine on when income is realized and recognized for accrual-basis taxpayers under the NIRC, and briefly describe how it operates. (b)Apply that doctrine to Zenith Tech’s facts and determine the gross income to be recognized in 2024. (c)If Zenith Tech uses the cash-basis method, determine how much gross income is recognized in 2024 and in 2025.