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Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year accrual basis C Corporation. On December 31, 2014, Jasper

Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year accrual basis C Corporation. On December 31, 2014, Jasper accrues a performance bonus of $100,000 to Lupe that it pays to him on January 15, 2015. In which year can Jasper deduct the bonus? In which year must Lupe include the bonus in gross income?

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