Richard,a Cash Basis Taxpayer,is an 80% Owner and President of WLFI

Short Answer

Richard,a cash basis taxpayer,is an 80% owner and president of WLFI TV.WLFI TV is an S corporation and uses the accrual method of accounting.On December 1,2013,WLFI TV accrues a bonus of $50,000 to Richard.The bonus is payable on January 31,2014.In what year does Richard report the income and WLFI TV take the deduction?
$\begin{array}{lll} & \text { Richard } & \text { WLFI TV } \\\text { a. } & 2014 & 2013 \\\text { b. } & 2014 & 2014 \\\text { c. } & 2013 & 2013 \\\text { d. } & 2013 & 2014\end{array}$