Final answer:
The question asks about revenue recognition in year 1 under Rev. Proc. 2004-34 relating to an unearned income amount of $6,750 for an individual named Stephanie. However, due to lack of details, a precise calculation cannot be provided without additional information.
Step-by-step explanation:
The question pertains to revenue recognition under Rev. Proc. 2004-34, which allows taxpayers to defer the recognition of certain income arising from advance payments for goods and services. The scenario mentioned involves Stephanie, who must determine the amount to recognize in year 1 when $6,750 is part of her unearned portion of income.
However, the given information in the question does not provide the necessary details to accurately calculate the income Stephanie will recognize in year 1. As such, additional information or context would be needed to provide a precise answer. Typically, under Rev. Proc. 2004-34, a taxpayer is able to recognize the income in the taxable year received or under certain conditions; defer recognizing part of the income to the subsequent tax year. It's important to refer to the specific details of the revenue procedure and the circumstances of the taxpayer to determine the recognized amount.