Problem $4-45($LO$.2)$

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Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy receives a salary of $$60,000$ per year. He also receives a bonus equal to $10\%$ of all collections from clients he serviced during the year $($which he receives in January of the following year$).$ Determine the tax consequences of the following events to the corporation and to Troy:

a$.$On December $31,2024,$ Troy was visiting a customer. The customer gave Troy a $$10,000$ check payable to the corporation for appraisal services Troy performed during $2024.$ Troy did not deliver the check to the corporation until January $2025.$

The corporation recognizes the income in:

$202420252024$

Troy recognizes the bonus related to this collection in:

$202420252025$

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b$.$Assume Eagle Corporation is an accrual basis taxpayer. On December $31,2024,$ Troy was visiting a customer. The customer gave Troy a $$10,000$ check payable to the corporation for appraisal services Troy performed during $2024.$ Troy deposited the check on December $31,$ but the bank did not add the deposit to the corporation's account until January $2025.$

The corporation recognizes the income in:

$202420252024$

Troy recognizes the bonus related to this collection in:

$202420252025$

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c$.$The facts are the same as in part $($a$),$ except that the customer told Troy to hold the check until January $2025$ when the customer could make a bank deposit that would cover the check.

The corporation recognizes the income in:

$202420252025$

Troy recognizes the bonus related to this collection in:

$20242025$