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Amanda is a cash basis, calendar year taxpayer that works for Speedy Corporation, an accrual basis, calendar year C Corporation. Speedys president and sole owner

Amanda is a cash basis, calendar year taxpayer that works for Speedy Corporation, an accrual basis, calendar year C Corporation. Speedys president and sole owner is Martha (also a cash basis taxpayer). In December of year 1, Speedy accrued a $5,000 bonus to Amanda and $20,000 bonus to Martha. Marthas bonus was paid January 31, year 2 and Amandas bonus was paid March 1, year 2. What is Speedys compensation deduction for the bonuses in years 1 and 2. a. Year 1: $5,000 and Year 2: $20,000 b. Year 1: $25,000 and Year 2: $0 c. Year 1: $0 and Year 2: $25,000 d. Year 1: $20,000 and Year 2: $5,000

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