On December 31, 2018, Peregrine Corporation, an Accrual Method, Calendar

question 99

Multiple Choice

On December 31, 2018, Peregrine Corporation, an accrual method, calendar year taxpayer, accrued a performance bonus of $100,000 to Charles, a cash basis, calendar year taxpayer. Charles is president and sole shareholder of the corporation. When can Peregrine deduct the bonus?

• A) In 2018, if the bonus was authorized by the Board of Directors and payment was made on or before April 15, 2019.
• B) In 2019, if payment was made at any time during that year.
• C) In 2018, if payment was made on or before April 15, 2019.
• D) In 2019, but only if payment was made on or before April 15, 2019.
• E) None of the above.

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Definitions:

Joblessness

The state of being without a job, often referring to unemployment or the lack of available employment opportunities in an economy.

Inner-City

Typically refers to the central part of a city, which can be characterized by higher population density, older infrastructure, and often, but not always, lower socioeconomic status.

Racial Segregation

The enforced separation of different racial groups in daily life, whether by law or social practice.

Working-Class Adulthood

The experience and social conditions of adults who are part of the working class, often focusing on employment, economic challenges, and social identity.