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

question 64

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 2014.In December,Octo received a billing statement from Samantha for $5,000 and paid Samantha the $5,000 in January 2015. Samantha is a calendar year taxpayer.When may Octo deduct the $5,000?

• A)2014
• B)2015
• C)Either 2014 or 2015
• D)The expense is not deductible since Samantha is Bart's sister.

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Definitions:

Discrete Probability Distribution

A discrete probability distribution outlines the probabilities of outcomes for discrete random variables, where outcomes are countable.

Discrete Probability Distribution

A probability distribution characterized by a set of discrete outcomes or values with corresponding probabilities.

Expected Number

The average value or mean of a random variable; it is the long-run average outcome of a random event repeated many times.

False Negative

A false negative occurs when a test incorrectly indicates that a particular condition or attribute is absent.