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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.
- 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.
- When is the bonus deductible?
- How would your answer change if Falcon is a cash basis taxpayer?
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Accounting An Essential Guide To Learning Accounting Quickly
Authors: Greg Shields
1st Edition
1978341873, 978-1978341876
