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Question 22 Mr. John Carre owns 67% of the stock of JC Incorporated and is employed as the corporation's CEO. The corporation is a calendar
Question 22
Mr. John Carre owns 67% of the stock of JC Incorporated and is employed as the corporation's CEO. The corporation is a calendar year, accrual basis taxpayer. On December 14, 2021, the board of directors authorized a $45,000 year-end bonus for Mr. Carre, which was paid to him on February 1, 2022. In which year can JC Incorporated deduct the bonus?
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2022.
2021.
JC Incorporated can deduct only $14,850 (33%) of the bonus in 2021.
JC Incorporated can never deduct the bonus.
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