3.33 points Save Answer Sally's employer, an accrual basis taxpayer, paid her a sizable bonus on December 31, XX01. However, Sally rushed out of the office for a New Year's Eve party and didn't swing by Human Recourses to pick up the bonus check. When she returned to the office on January 2, XX02, she deposited the check into her bank account. If Sally is a cash basis taxpayer, is the income taxable to Sally in XX01? The bonus is not taxable in XX01 because Sally did not receive access to the funds until XX02. The bonus is not taxable in XX01 because Sally's employer cannot deduct it as an expere until XX02 when the check clears the company's bank account. O The bonus is taxable in XX01 because Sally had the right to the funds as of December 31, XX01. The bonus is taxable in XX01 because Sally's employer is an accrual basis taxpayer and can deduct the bonus in XX01.

Sally's employer, an accrual basis taxpayer, paid her a sizable bonus on December 31, XX01. However, Sally rushed out of the office for a New Year's Eve party and didn't swing by Human Recourses to pick up the bonus check. When she returned to the office on January 2, XX02, she deposited the check into her bank account. If Sally is a cash basis taxpayer, is the income taxable to Sally in XX01? The bonus is not taxable in XX01 because Sally did not receive accoss to the funds until XX02. The bonus is not taxable in XX01 bocause Sally's employer cannot deduct it as an experhe until XX02 when the check clears the companys bank account. The bonus is taxable in XX01 bocause Sally had the right to the funds as of December 31, XX01 The bonus is taxable in XX01 because Sally's employer is an accrual basis taxpayer and can deduct the bonus in XX01