BZD, a calendar year corporation, an accrual basis taxpayer, made the following year end accrual...
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BZD, a calendar year corporation, an accrual basis taxpayer, made the following year end accrual for 2021 financial statement purposes: $40,000 expense and $40,000 liability for the CEO's 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2022 and the remaining $20,000 before 8 months after year end, i.e., before September 15, 2022. BZD and the CEO are not related parties. Which of the following is a true statement? O BBZD cannot deduct the $40,000 in 2021, since the all-events test was not met O BZD can deduct the $40,000 accrued compensation expense in 2021, since it was paid within 8 months after year end. O BZD can deduct $20,000 of the $40,000 accrued bonus expense in 2021 (amount paid by March 15, 2022). The $20,000 bonus payment made on May 1, 2022, is deductible in 2022 BZD can deduct $20,000 of the $40,000 accrued bonus expense in 2021 (amount paid by March 15, 2022). The $20,000 bonus payment made on May 1, 2022, is not deductible in either 2021 or 2022. 
BZD, a calendar year corporation, an accrual basis taxpayer, made the following year end accrual for 2021 financial statement purposes: $40,000 expense and $40,000 liability for the CEO's 2020 bonus. BZD paid $20,000 to the CEO on March 1,2022 and the remaining $20,000 before 81/2 months after year end, i.e., before September 15, 2022. BZD and the CEO are not related parties. Which of the following is a true statement? BBZD cannot deduct the $40,000 in 2021 , since the all-events test was not met BZD can deduct the $40,000 accrued compensation expense in 2021, since it was paid within 821 months after year end. BZD can deduct $20,000 of the $40,000 accrued bonus expense in 2021 (amount paid by March 15,2022 ). The $20,000 bonus payment made on May 1, 2022, is deductible in 2022 BZD can deduct $20,000 of the $40,000 accrued bonus expense in 2021 (amount paid by March 15, 2022). The $20,000 bonus payment made on May 1, 2022, is not deductible in either 2021 or 2022
BZD, a calendar year corporation, an accrual basis taxpayer, made the following year end accrual for 2021 financial statement purposes: $40,000 expense and $40,000 liability for the CEO's 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2022 and the remaining $20,000 before 8 months after year end, i.e., before September 15, 2022. BZD and the CEO are not related parties. Which of the following is a true statement?
O BBZD cannot deduct the $40,000 in 2021, since the all-events test was not met
O BZD can deduct the $40,000 accrued compensation expense in 2021, since it was paid within 8 months after year end.
O BZD can deduct $20,000 of the $40,000 accrued bonus expense in 2021 (amount paid by March 15, 2022). The $20,000 bonus payment made on May 1, 2022, is deductible in 2022
BZD can deduct $20,000 of the $40,000 accrued bonus expense in 2021 (amount paid by March 15, 2022). The $20,000 bonus payment made on May 1, 2022, is not deductible in either 2021 or 2022.
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