Question
On December 31, 2017, Peregrine Corporation, an accrual method, calendar year taxpayer, accrued a performance bonus of $100,000 to Charles, a cash basis, calendar year
On December 31, 2017, Peregrine Corporation, an accrual method, calendar year taxpayer, accrued a performance bonus of $100,000 to Charles, a cash basis, calendar year taxpayer. Charles is president and sole shareholder of the corporation. When can Peregrine deduct the bonus?
- In 2018, if payment was made at any time during that year.
- In 2017, if payment was made on or before April 15, 2018.
- In 2017, if the bonus was authorized by the Board of Directors and payment was made on or before April 15, 2018.
- In 2018, but only if payment was made on or before April 15, 2018.
- None of the above
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
