Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. b corporation, a calendar year-end, accrual basis

B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a...

90.2K

Verified Solution

Question

Accounting

B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 2021, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1, 2022; the interest is not paid until 2023. How much can B Corporation deduct on its 2022 tax return?

a. $19,000

b. $4,000

c. $12,000

d. $15,000

e. $0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students