Question: Exercise Three - 1 Subject: Bonus Neelson Inc. has a September 30 year end. On August 1, 2019, it declares a bonus of $100,000 payable

Exercise Three - 1 Subject: Bonus Neelson Inc. has a September 30 year end. On August 1, 2019, it declares a bonus of $100,000 payable to Mr. Sam Neelson, an executive of the company. The bonus is payable on May 1, 2020. Describe the tax consequences of this bonus to both Neelson Inc. and Mr. Neelson

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