B Corporation, an accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 20X1, the corpor

Question

3 years ago

7

B Corporation, an accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 20X1, the corpor

ation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on March 1, 20X2; the interest is not paid until 20X3. How much can B Corporation deduct on its 20X2 tax return?a. $0b. $4,000c. $15,000d. $19,000e. $12,00

Business

1 answer:

Luda [366] · Answer 1 · 2022-04-26T13:12:05+03:00

Luda [366]3 years ago

3 0

Answer:

c. $15,000

Explanation:

The explanation for this question is given in the attachment below.