(TCO 2) Axis Corp. is an accrual basis calendar-year corporation. On December 13, 2014, the Board of Directors declared a 2% of profits bonus to all employees for services rendered during 2014 and notified them in writing. None of the employees own stock in Axis. The amount represents reasonable compensation for services rendered and was paid on March 13, 2015. Axis' bonus expense may (Points : 5)

not be deducted on Axis's 2014 tax return because the per share employee amount cannot be determined with reasonable accuracy at the time of the declaration of the bonus.

be deducted on Axis's 2014 tax return.

be deducted on Axis's 2015 tax return.

not be deducted on Axis's tax return because payment is a disguised dividend