Ivory Corporation, a Calendar Year, Accrual Method C Corporation, Has

question 59

Multiple Choice

Ivory Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other. Craig owns 35% of the stock, and Oscar owns the remaining 65%. During 2014, Ivory paid a salary of $100,000 to each shareholder. On December 31, 2014, Ivory accrued a bonus of $25,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 3, 2015, compute Ivory Corporation's 2014 deduction for the above amounts.

• A) $250,000.
• B) $225,000.
• C) $200,000.
• D) $125,000.
• E) None of above.

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Definitions:

Traditional Career Path

A linear progression in one's professional life, typically involving successive roles within the same field or industry.

Core Worker

An employee who is considered essential to the operations of a business, often providing critical skills or functions.

Charles Handy

A respected British management thinker known for his theories on organizational culture and motivation.

Common Purpose

A shared vision or goal that unites members of a group, team, or community, driving collaborative efforts towards achieving that goal.