Sarah, a cash-basis, calendar-year individual, is the president of SRS Corporation and owns 80 percent of its stock. SRS is an accrual-basis, calendar-year C corporation. In December year 1, SRS Corporation accrued a $50,000 bonus payable to Sarah and $120,000 in bonuses payable to other employees. The bonuses were all paid on March 1, year 2. How much of the bonuses can SRS deduct in year 1?
a. 0
b. $50,000
c. $120,000
d. $170,000