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7 (3 points): Madalyn, an individual and cash basis taxpayer, owns 70% of the stock of Kihei Corporation, a calendar year, accrual basis taxpayer. On
7 (3 points): Madalyn, an individual and cash basis taxpayer, owns 70% of the stock of Kihei Corporation, a calendar year, accrual basis taxpayer. On December 31, 2021, Kihei accrues a bonus for financial statement purposes of $82,000 to Madalyn, and pays the bonus on January 3, 2022. When does Madalyn report the bonus as income, and when does Kihei deduct the bonus? How would your answer change if Madalyn owned only 35% of Kihei
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