Kai, a cash basis taxpayer, is a 75% owner and president of Finnigan Fish Market. Finnigan, an
Question:
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, 2018, Finnigan accrues a bonus of $40,000 to Kai. The bonus is payable on February 1, 2019. When is the bonus deductible? How would your answer change if Finnigan is a cash basis taxpayer?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
Generally an accrual basis corporation can deduct an expense in the tax ...View the full answer
Answered By
SUMAN DINDA
I LIKE TO TEACH STUDENTS. SO, I START MYSELF AS A PRIVATE TUTOR. I TEACH STUDENTS OF DIFFERENT CLASSES. I HAVE ALSO DONE BACHELOR OF EDUCATION DEGREE(B.ED). DURING THIS COURSE I HAD TO TEACH IN A SCHOOL. SO I HAVE A GOOD EXPERIENCE IN TEACHING.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Concepts In Federal Taxation
ISBN: 9781337702621
26th Edition
Authors: Kevin E. Murphy, Mark Higgins
Question Posted:
Students also viewed these Business questions
-
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, 2021, Finnigan accrues a bonus of...
-
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, 2011, Finnigan accrues a bonus of...
-
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, 2016, Finnigan accrues a bonus of...
-
During extension, why do we sometimes get joints (and veins) and other times shear fractures and faults?
-
Firm B and firm S are in the process of negotiating a contract whereby S will synthesize a hormone for B. Besides the payment from B to S, three issues are involved: (1) Whether the hormone will be...
-
NASA provides these duration times (in minutes) of all flights of the space shuttle Challenger: 7224, 8784, 8709, 11,476, 10,060, 11,844, 10,089, 11,445, 10,125, 1.Why does it not make sense to...
-
Some might say that coding is not as important as analysis or design since programming errors can be identified and corrected easily. Do you agree with this statement? Why?
-
Susan Varhard, treasurer of the Gammamax Company, has proposed that the company should sell equity and buy back debt in order to maximize its value. As evidence, she presents the financial statements...
-
Our friend River wrote the code shown with the intention of printing out a message to the user if the variable letter was a lowercase letter. However, upon testing it with the character 'A', the code...
-
Use Worksheet 14.1 to help Paul and Crystal Meyer, whod like to retire in about 20 years. Both have promising careers, and both make good money. As a result, theyre willing to put aside whatever is...
-
Lonnie owns 100% of Quality Company's common stock. Lonnie, the president of Quality, is a cash basis taxpayer. Quality is short of cash as of December 31, 2018, the close of its tax year. As a...
-
The Parr Corporation incurs the following expenses. When can it deduct the expenses if it uses the accrual method of accounting? the cash method? a. Parr Corporation mails a check for $5,000 to the...
-
Use the illustration in Figure 7.12 to draw the figures requested in Problems 1119. Figure 7.12 RS
-
Kindly give detailed formula for computing the following in Capital Budgeting using Excel Spreadsheet. 1) Payback Period 2) Discounted Payback Period 3) Internal Rate of Return (IRR) 4) Modified IRR...
-
30% of your portfolio is in Stock A which has an expected return of 12% and 70% is in bonds which have an expected return of 8%- What is the expected return of your portfolio?
-
1) Convert the following numbers to binary (use up to 4 digits of accuracy to the whole-number point). a. 1077.0010 b. ABF.EH (NOTE: subscript H stands for "Hexadecimal" and is equivalent to the...
-
Identifies the credential that a professional requires to assist the client in the purchase of stock and bonds in their investment portfolio. Where should this credential be registered and what is...
-
A Big Mac costs 324 roubles in Moscow, and $4.57 in Chicago. If the official exchange rate is $0.016 per rouble, what percentage over or underpriced are roubles? Give your answer in percentage points...
-
Consider Bill and Ted, the two citizens in the country of Adventure land described in Problem 9 from Chapter 1. Suppose that Bill and Ted have the same utility function U(Y) = Y1/2, where Y is...
-
The graph of the sequence whose general term is an = n - 1 is which of the following? [8.1] A. B. TITTT 3-2-1 23.45 2.3.4
-
The Browser Company purchases a computer in August 2016 for $12,000. Browser does not elect to expense the asset but wants to claim the maximum depreciation. In May 2019, the company sells the...
-
The Browser Company purchases a computer in December 2016 for $12,000. This is the only depreciable personal property acquired during the year. Browser does not elect to expense the asset but wants...
-
Kris starts a new business in 2016. She purchases 7-year MACRS property costing $12,000. Her business income before any cost-recovery deductions is $8,000. a. What is the maximum cost-recovery...
-
Beta Manufacturing Company produces a single product. The controller has asked for your help in preparing a schedule of cost of goods manufactured for the month just ended. The following information...
-
Can you elucidate the intricacies of cellular respiration, delineating the metabolic pathways involved and their respective roles in energy production within eukaryotic organisms ?
-
How do the mechanisms of ventilation and gas exchange operate synergistically in facilitating the diffusion of oxygen and carbon dioxide across the respiratory membrane, ensuring optimal...
Study smarter with the SolutionInn App