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 1,2013,WLFI TV accrues a bonus of $50,000 to Richard.The bonus is payable on January 31,2014.In what year does Richard report the income and WLFI TV take the deduction?
$\begin{array}{lll}
& \text { Richard } & \text { WLFI TV } \
\text { a. } & 2014 & 2013 \
\text { b. } & 2014 & 2014 \
\text { c. } & 2013 & 2013 \
\text { d. } & 2013 & 2014
\end{array}$

Question

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 1,2013,WLFI TV accrues a bonus of $50,000 to Richard.The bonus is payable on January 31,2014.In what year does Richard report the income and WLFI TV take the deduction?
$\begin{array}{lll} 
& \text { Richard } & \text { WLFI TV } \
\text { a. } & 2014 & 2013 \
\text { b. } & 2014 & 2014 \
\text { c. } & 2013 & 2013 \
\text { d. } & 2013 & 2014
\end{array}$

Quizplus · Accepted Answer

The Answer of 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 1,2013,WLFI TV accrues a bonus of $50,000 to Richard.The bonus is payable on January 31,2014.In what year does Richard report the income and WLFI TV take the deduction?
$\begin{array}{lll} 
& \text { Richard } & \text { WLFI TV } \
\text { a. } & 2014 & 2013 \
\text { b. } & 2014 & 2014 \
\text { c. } & 2013 & 2013 \
\text { d. } & 2013 & 2014
\end{array}$

Richard,a Cash Basis Taxpayer,is an 80% Owner and President of WLFI