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Business, 04.07.2020 19:01 whitewesley124

B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 2019, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1, 2020; the interest is not paid until 2021. How much can B Corporation deduct on its 2019 tax return for these two expenses?

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B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash ba...
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