t its June 30, 2019 year-end, a company (Opco) accrued a bonus to its owner/manager of $150,000. Opco paid the amount at the rate of $20,000 per month for 7 months and the final $10,000 was paid in 2021. How much would be deductible by Opco in 20X1, 2019, 2020 and 2021?

Multiple Choice

• $150,000 in 2019 as Opco, like all businesses, reports income on an accrual basis.

• $120,000 in 2019, $20,000 in 2020 and $10,000 in 2021.

• $140,000 in 2020 and $10,000 in 2021.

• $120,000 in 2019 and $30,000 in 2020.