Bendom Inc, a Calendar Year, Accrual Basis Corporation, Hired Rukel

Bendom Inc, a calendar year, accrual basis corporation, hired Rukel Company to provide professional services. Rukel completed the services on November 30, 2016, and immediately sent Bendom a bill for $37,750. Bendom paid the bill on January 4, 2017. Which of the following statements is false?

A) If Bendom and Rukel are related parties, Rukel must report $37,750 income on its 2016 tax return regardless of its method of accounting.
B) If Rukel uses the accrual method, it must report $37,750 income on its 2016 tax return.
C) If Bendom and Rukel are unrelated parties, Bendom can deduct the $37,750 accrued expense on its 2016 tax return.
D) If Bendom and Rukel are related parties, Bendom can deduct the $37,750 accrued expense on its 2016 tax return only if Rukel uses the accrual method of accounting.