Kai, a cash basis taxpayer, is a 75% owner and president of Finnigan Fish Market. Finnigan, an

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Kai, a cash basis taxpayer, is a 75% owner and president of Finnigan Fish Market. Finnigan, an S corporation, uses the accrual method of accounting. On December 28, 2017, Finnigan accrues a bonus of $40,000 to Kai. The bonus is payable on February 1, 2018. When is the bonus deductible? How would your answer change if Finnigan is a cash basis taxpayer?

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Concepts In Federal Taxation 2018

ISBN: 9781337386074

25th Edition

Authors: Kevin E. Murphy, Mark Higgins

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