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Ben Corporation uses the accrual method of accounting. At which of the following times may Ben Corporation deduct business expenses and interest owed to a

Ben Corporation uses the accrual method of accounting. At which of the following times may Ben Corporation deduct business expenses and interest owed to a related person who uses the cash method of accounting?

a) Never. The corporation may not deduct these expenses.

b) As soon as the corporation pays the expenses

c) After the corporation makes the payment and the related person includes the payment in

his gross income

d) The year following the payment of the expenses

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