Multiple Choice
Bart owns 100% of the stock of Octo Corporation, which uses the accrual method. Bart's sister Samantha, a cash- method taxpayer, did some advertising work for Octo in November 2018. In December, Octo received a billing statement from Samantha for $5,000 and paid Samantha the $5,000 in January 2019. Samantha is a calendar- year taxpayer. When may Octo deduct the $5,000?
A) 2018
B) 2019
C) Either 2018 or 2019
D) The expense is not deductible since Samantha is Bart's sister.
Correct Answer:
Verified
Correct Answer:
Verified
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