Bev is the sole owner of Bev & Associates,an accrual basis corporation.In 2013,Bev & Associates has a bad year and Bev lends the corporation $50,000 to meet expenses.The corporation accrues interest expense of $5,000 on the loan from Bev,but does not pay the interest to her in cash.
How much of the $5,000 in accrued interest expense can Bev & Associates deduct on its 2013 corporate tax return? Explain.

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The Answer of Bev is the sole owner of Bev & Associates,an accrual basis corporation.In 2013,Bev & Associates has a bad year and Bev lends the corporation $50,000 to meet expenses.The corporation accrues interest expense of $5,000 on the loan from Bev,but does not pay the interest to her in cash.
How much of the $5,000 in accrued interest expense can Bev & Associates deduct on its 2013 corporate tax return? Explain.

Bev Is the Sole Owner of Bev & Associates,an Accrual