Bart Owns 100% of the Stock of Octo Corporation,which Uses

question 139

Multiple Choice

Bart owns 100% of the stock of Octo Corporation,which uses the accrual method.Bart's sister Samantha,a cash method taxpayer,did some advertising work for Octo in November 2016.In December,Octo received a billing statement from Samantha for $5,000 and paid Samantha the $5,000 in January 2017.Samantha is a calendar year taxpayer.When may Octo deduct the $5,000?

• A)2016
• B)2017
• C)Either 2016 or 2017
• D)The expense is not deductible since Samantha is Bart's sister.

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Definitions:

Wild Boy of Aveyron

An historical case from the late 18th century of a feral child who was found in France and who became a subject of study in the development and education of children with severe disabilities.

Nude

A state of being without clothing, often used in the context of art, privacy, or natural states.

Highly Ordered

Structured or organized in a meticulous and systematic manner, often referring to systems, arrangements, or processes.

Organized

Refers to being arranged or structured in a systematic way, often implying efficiency and orderliness.