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Business, 11.02.2021 19:50 acsmelis

B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 2020, 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, 2021; the interest is not paid until 2022. How much can B Corporation deduct on its 2020 tax return for these two expenses

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