Question: On December 3 1 , 2 0 2 4 , Topaz, Inc., an accrual basis C corporation, accrues a $ 9 0 , 0 0

On December 31,2024, Topaz, Inc., an accrual basis C corporation, accrues a $90,000 bonus to Baron, its vice president and a 70% shareholder. Topaz pays the bonus to Baron, who is a cash basis taxpayer, on March 15,2025. Topaz deducts the bonus in 2025, the year in which it is included in Baron's gross income.
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