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6) On December 31, 2019, Flamingo, Inc., a calendar year, accrual method C corporation, accrues a bonus of $50,000 to its president (a cash basis
6) On December 31, 2019, Flamingo, Inc., a calendar year, accrual method C corporation, accrues a bonus of $50,000 to its president (a cash basis taxpayer) who owns 75% of the corporations outstanding stock. The $50,000 bonus is paid to the president on February 4, 2020. For Flamingos 2019 tax return, can the company deduct this bonus payment? Please explain.
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