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

question 34

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 2016, Ivory paid a salary of $100,000 to each shareholder. On December 31, 2016, Ivory accrued a bonus of $25,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 3, 2017, compute Ivory Corporation's 2016 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:

Extraversion

A characteristic that denotes being extroverted, energetic, and favoring engagement with others.

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a harmonious manner with others.

Genetic Makeup

The set of genes or genetic information that an individual inherits from their parents, which contributes to their physical and psychological traits.