Value Corporation is a calendar year taxpayer that uses the accrual method of accounting. On December 10

Question:

Value is a calendar year taxpayer that uses the accrual method of accounting. On December 10 of the current year, Value accrues a bonus payment of $100,000 to Brett, its president and sole shareholder. Brett is a calendar year taxpayer who uses the cash method of accounting.
a. When can Value deduct the bonus if it pays it to Brett on March 11 of next year? On March 18 of next year?
b. How would your answers to Part a change if Brett were an employee of Value who owns no stock in the Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...