True/False
On December 31,2015,Lavender,Inc. ,an accrual basis C corporation,accrues a $50,000 bonus to Barry,its vice president and a 40% shareholder.Lavender pays the bonus to Barry,who is a cash basis taxpayer,on March 14,2016.Lavender can deduct the bonus in 2016,the year in which it is included in Barry's gross income.
Correct Answer:
Verified
Correct Answer:
Verified
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