Ivory Corporation,a Calendar Year,accrual Method C Corporation,has Two Cash Method,calendar

Multiple Choice

Ivory Corporation,a calendar year,accrual method C corporation,has two cash method,calendar year shareholders who are unrelated to each other.Craig owns 35% of the stock,and Oscar owns the remaining 65%.During 2015,Ivory paid a salary of $100,000 to each shareholder.On December 31,2015,Ivory accrued a bonus of $25,000 to each shareholder.Assuming that the bonuses are paid to the shareholders on February 3,2016,compute Ivory Corporation's 2015 deduction for the above amounts.

A) $250,000
B) $225,000
C) $200,000
D) $125,000
E) None of above