In 2019,Dargo Inc.,a calendar year corporation,accrued a $75,000 year-end bonus payable to its communications director.Dargo and the director are not related parties.Dargo paid the bonus to the director on February 8,2020.Dargo can deduct the bonus in 2019.

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Since Dargo Inc. is a calendar year corporation and the bonus was accrued in 2019 and paid within 2.5 months after year-end, it can be deducted in 2019 under the IRS's "all events test" and economic performance rules.