Harold Is a 90% Owner of National Homes Construction,an Accrual

Multiple Choice

Harold is a 90% owner of National Homes Construction,an accrual basis S corporation.On December 30,2013,National Homes accrues a $100,000 bonus to Harold,payable on February 15,2014.
I.If Harold is an accrual basis taxpayer,National Homes deducts the bonus in 2013 and Harold reports the income in 2014.
II.If Harold is a cash basis taxpayer,National Homes deducts the bonus in 2013 and Harold reports the income in 2014.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.