North Dakota Industries Inc. is a calendar year accrual-based C- Corporation that operates several retail clothing stores. Alice (a calendar year cash basis individual) owns 49 % of the outstanding stock of North Dakota. Alice owns another business that she operates as a cash basis sole proprietorship called Super Clean. This proprietorship provides cleaning and maintenance services to North Dakota retail stores for $1,500 per month. North Dakota accrues the amount owed to Super Clean for December 2019 services, but did not pay it to Alice's proprietorship until January 2020. Which of the following statements is correct? North Dakota can deduct the December services in 2019 and Alice/Super Clean will recognize the income in 2020 North Dakota can never deduct payments for services to a shareholder North Dakota cannot deduct the December services in 2019 but will be able to deduct it in 2020 when it is paid North Dakota can deduct the December services in 2019 and Alice/Super Clean will have to recognize the income in 2019