On December 15, 2021, Sooner Service Corp., a corporation using the accrual method of accounting, accrued $25,000 compensation expense for a year-end bonus payable to Ms. Allison, who is Sooner's top producing sales executive, and a cash basis taxpayer. Sooner paid the $25,000 to Ms. Allison on April 1, 2022. Which of the following statements is TRUE?

Group of answer choices

If Ms. Allison and Sooner are not related parties, Sooner can deduct the accrued expense in 2021.

If Ms. Allison and Sooner are not related parties, Ms. Allison can elect to include the $25,000 bonus in gross income in either 2021 or 2022.

If Ms. Allison and Sooner are related parties, Ms. Allison must include her $25,000 bonus in 2021 gross income.

Regardless of whether Sooner and Ms. Allison are related parties, Sooner cannot deduct the accrued compensation expense in 2021.