ABC, Inc., a calender year, accrual basis corporation, accrues a $100,000 bonus payable to its shareholder for its December 31, X1 financial statements. When can ABC deduct the $100,000 for tax?

Select one:

a.X1 if the shareholder is a related party and the bonus is paid on March 31, X2.

b.X2 if the shareholder is a related party and the bonus is paid on March 1, X2.

c.X1 if the shareholder is not a related and the bonus is paid on March 31, X2.

d.X2 if the shareholder is not a related party and the bonus is paid on March 1, X2.