This year, Larry was awarded a bonus by his corporate employer that will be paid in five annual installments beginning in the year Larry retires. The employer's liability for the future payment is unfunded. Even though Larry earned the bonus this year, he does not recognize any current income.

Question

Quizplus · Accepted Answer

Larry does not recognize any current income because the bonus will not be paid until he retires in future years, and the liability for the payment is unfunded.

This Year, Larry Was Awarded a Bonus by His Corporate