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The other option is to take the more conservative approach of counting only $5,000 (or other percentage of $10 000) as revenue in 2001 on the grounds that the service involved.
3. If the cruise happens in 2002, its profit of $20 000 will be counted as a revenue in 2001.
4. This is an opportunity cost issue. If the nursery owner decides to keep trees growing for one more year, his revenue might be higher. In that way, he will not report any revenue in 2001. However, there is no guarantee that the trees could be sold for more than $4 in 2002 (market prices may decrease, or fire may destroy them)...
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