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

question 95

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 2019.In December,Octo received a billing statement from Samantha for $5,000 and paid Samantha the $5,000 in January 2020.Samantha is a calendar-year taxpayer.When may Octo deduct the $5,000?

• A)2019
• B)2020
• C)Either 2019 or 2020
• D)The expense is not deductible since Samantha is Bart's sister.

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Definitions:

Relationship

A relationship refers to a connection, association, or involvement between people, whether based on kinship, love, friendship, or other form of social commitment.

Variables

Elements or factors that can be changed and measured in an experiment to determine their effects on the outcome.

Aggression

Behavior intended to harm or intimidate others, driven by various psychological, environmental, or biological factors.

Heat Waves

Prolonged periods of excessively hot weather, which can have significant health, ecological, and societal impacts.