Question
On December 15th, 2020, an accrual basis corporation authorized a $25,000 bonus to its controlling shareholder. The shareholder is a cash-basis taxapyer. Both taxpayers use
On December 15th, 2020, an accrual basis corporation authorized a $25,000 bonus to its controlling shareholder. The shareholder is a cash-basis taxapyer. Both taxpayers use the calendar as the tax year. The bonus is paid on February 15th, 2021
The bonus is not deductble in 2020 or in 2021
The bonus is deductible in 2020 only.
The bonus is deductible in 2021 only.
The bonus is dedcutible in either 2020 or 2021
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Financial Accounting An Introduction to Concepts, Methods and Uses
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
14th edition
978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023
