1. L Ltd. accrued bonuses totaling $100,000 for its year ended December 31, 2020. $60,000 will be paid on April 1, 2021 and the remaining $40,000 will be paid on September 1, 2021. What amount can L deduct for tax purposes in 2020?

2. For tax purposes, stock-based compensation would be deductible to the corporation

A. In the year the option was granted.

B. Never, as the issue of company shares is not a business expense

C. When recorded as an expense in the financial statements, in accordance with GAAP.

D. In the year the option was exercised