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1. During the company Christmas party on December 23rd 2019, Jason received his annual bonus check of $15,000. Jason did not deposit the check to

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1. During the company Christmas party on December 23rd 2019, Jason received his annual bonus check of $15,000. Jason did not deposit the check to his bank account until January 3rd 2020. Which of the following is true under the rule of constructive receipt? (A) The $15,000 bonus is taxable income for 2020 (taxes due by April 2021) because Jason deposited the bonus check on January 3rd, 2020 (B) The $15,000 bonus is taxable income for 2019 (taxes due by April 2020) because Jason received the bonus check without any restrictions on December 23 2019 (C) $7,500 is taxable income for 2019 and $7,500 is taxable income for 2020 (D) Jason has no taxable income in 2019 or 2020 because bonuses are not taxable income 2. Which of the following would cause an employee of Hill Corp to recognize income under the economic benefit dctrine? (A) The employer places assets in a revocable trust for the future benefit of the employee. The employer makes an irrevocable promise to pay a future benefit to the employee. The employer places the assets in a rabbi trust. The employer places the assets in a secular trust. 4. All the following statements concerning XYZ Corporation's use of a secular trust are correct, EXCEPT: (A) Funds held in a secular trust cannot be reached by the employer's creditors. (B) The IRS has ruled that trust earnings may be subject to taxation when they are earned at the trust level and again when actually paid out to the executive. Employer contributions to a secular trust are taxed as compensation to the executive and may be claimed as a tax deduction by the employer in the year in which such contributions are made. (D) Nonqualified deferred-compensation benefits promised by the employer under a secular trust are less secure than they would be under a rabbi trust

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