Question: On December 3 1 , 2 0 2 4 , Lavender, Inc., ( an accrual basis, calendar year C corporation ) , accrues a $

On December 31,2024, 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 10,2025. Lavender can deduct the bonus in 2025, the year in
which it is included in Barry's gross income.
True
False
On December 31,2024, Lavender, Inc., (an accrual basis, calendar year C

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