Richard, a Cash Basis Taxpayer, Is an 80% Owner and President

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, 2014, WLFI TV accrues a bonus of $50,000 to Richard. The bonus is payable on January 31, 2015. In what year does Richard report the income and WLFI TV take the deduction?