Kai, a cash basis taxpayer, is a 75% owner and president of Finnigan Fish Market. Finnigan, an
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Kai, a cash basis taxpayer, is a 75% owner and president of Finnigan Fish Market. Finnigan, an S corporation, uses the accrual method of accounting. On December 28, 2017, Finnigan accrues a bonus of $40,000 to Kai. The bonus is payable on February 1, 2018. When is the bonus deductible? How would your answer change if Finnigan is a cash basis taxpayer?
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Generally an accrual basis corporation can deduct an expense in the tax ...View the full answer
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Related Book For
Concepts In Federal Taxation 2018
ISBN: 9781337386074
25th Edition
Authors: Kevin E. Murphy, Mark Higgins
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