Question: On December 3 1 , 2 0 2 3 , Emerald, Inc., a calendar year, accrual method C corporation, accrues a bonus of $ 5

On December 31,2023, Emerald, Inc., a calendar year, accrual method C corporation, accrues a bonus of $50,000 to its president (a cash basis taxpayer), who owns 75% of the corporation's outstanding stock. The $50,000 bonus is paid to the president on February 1,2024. For Emerald's 2023 Form 1120, the $50,000 bonus will be a subtraction item on Schedule M1.
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