Kalvin, a cash basis taxpayer, is a 75% owner and president of Falcon Fish Market. Falcon, an S corporation, uses the accrual method of accounting. On December 28, 2019, Falcon accrues a bonus of $40,000 to Kalvin. The bonus is payable on February 1, 2020.

a. When is the bonus deductible?

b. How would your answer change if Falcon is a cash basis taxpayer?