josh and michael are related for tax purposes. josh is self-employed and has an accrual-basis sole proprietorship. michael is a cash-method taxpayer. josh hired michael to help him complete a construction project. at the end of the year, josh owed michael $700 for work performed during december. josh paid michael the $700 on january 2. when will josh be able to deduct the wage expense and when will michael have to include the $700 in gross income?