Question: On December 3 1 , 2 0 2 2 , Lavender, Inc., ( an accrual basis, calendar year C corporation ) , accrues a $

On December 31,2022, Lavender, Inc., (an accrual basis, calendar year C corporation), accrues a $50,000 bonus to Barry, its vice president and a 40% shareholder. Lavender pays the bonus to Barry, who is a cash basis taxpayer, on March 14,2023. Lavender should deduct the bonus in 2023, the year in which it is included in Barrys gross income.
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