Gerald, a Cash Basis Taxpayer, Owns 70% of the Stock

question 79

Essay

Gerald, a cash basis taxpayer, owns 70% of the stock of Black Corporation, a calendar year, accrual basis C corporation. On December 31, 2016, Black accrued a bonus of $80,000 to Gerald, and paid the bonus to Gerald on January 6, 2017. When does Gerald report the bonus, and when does Black Corporation deduct the bonus? Would your answers change if Gerald was a 40% shareholder of Black?

Understand the concept of cognitive development in late adulthood as described by Schaie.

Recognize different perspectives on cognitive development during the adolescent years and beyond.

Understand the concept of postformal thought and its significance in adult cognitive development.

Comprehend the development of conservation and its importance in cognitive development during preschool years.

---

Definitions:

Enforce

To compel observance of or obedience to a law, rule, or obligation.

Minor

An individual under the age of majority, legally considered not yet fully capable of taking on certain responsibilities and rights.

Contractual Purposes

The intended aims or goals that parties seek to achieve through entering into a contract.

Covenant Not to Compete

A legal agreement in which one party agrees not to enter into or start a similar profession or trade in competition against another party.