Marvin, an attorney, is a cash basis, calendar year taxpayer Marvin 's two daughters each own 50 percent of the stock of Marvil Corporation, a calendar year, accrual basis corporation During year 1, Marvin completes some legal work for Marvil Corporation on December 18 and earns a $20,000 fee In wh...

a Because Marvins daughters own Marvil Corporation it is a related en ...

Marvin, an attorney, is a cash-basis, calendar-year taxpayer. Marvin's two daughters each own 50 percent of the

Question:

Marvin, an attorney, is a cash-basis, calendar-year taxpayer. Marvin's two daughters each own 50 percent of the stock of Marvil a calendar-year, accrual-basis During year 1, Marvin completes some legal work for Marvil on December 18 and earns a $20,000 fee. In which year should Marvil deduct the legal expense if
a. Payment is made to Marvin on December 30, year 1?
b. Payment is made to Marvin on January 6, year 2?
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...