True/False
On December 31, 2019, Lavender, Inc., (an accrual basis, calendar year 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, 2020. Lavender can deduct the bonus in 2020, the year in which it is included in Barry's gross income.
Correct Answer:
Verified
Correct Answer:
Verified
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