In computing the net income on the financial statement of Kelsey Inc. for its year ended December 31, 2018, bonuses of $500,000 were accrued. On July 15, 2019, $150,000 of the bonus was paid to the owner-manager, and the remaining $350,000 of bonuses were paid to other employees on July 31, 2019. Which of the following statements is true in 2018?

a)The $150,000 bonus is deductible, but the $350,000 bonus is not deductible.

b)The $500,000 bonus is not deductible.

c)The $500,000 bonus is fully deductible.

d)The $350,000 bonus is deductible, but the $150,000 bonus is not deductible.