Ebony Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders...

 

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Ebony Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other. Charlie owns 35% of the stock, and Oliver owns the remaining 65%. During 2017, Ebony paid a salary of $200,000 to each shareholder. On December 31, 2017, Ebony accrued a bonus of $25,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 2, 2018, compute Ebony Corporation's 2017 deduction for the above amounts. $425,000 a. b. $450,000 C. $225,000 d. $400,000 Ebony Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other. Charlie owns 35% of the stock, and Oliver owns the remaining 65%. During 2017, Ebony paid a salary of $200,000 to each shareholder. On December 31, 2017, Ebony accrued a bonus of $25,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 2, 2018, compute Ebony Corporation's 2017 deduction for the above amounts. $425,000 a. b. $450,000 C. $225,000 d. $400,000

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Option a 425000 Explanation C200000 200000 25000 t... View the full answer