On December 31, 2019, Lavender, Inc

question 83

True/False

On December 31, 2019, Lavender, Inc., (an accrual basis, calendar year C corporation), accrues a $50,000 bonus to Barry, its vice president and a 40% shareholder. Lavender pays the bonus to Barry, who is a cash basis taxpayer, on March 14, 2020. Lavender can deduct the bonus in 2020, the year in which it is included in Barry's gross income.

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Definitions:

Fine Movements

Precise, controlled movements that require small muscle coordination, such as writing with a pencil or threading a needle.

Prefrontal Cortex

The region of the brain located at the front of the frontal lobes, instrumental in decision-making, planning, and moderating social behavior.

Organizing Movements

The process of coordinating and directing actions or efforts towards achieving a specific goal or social change.

Cerebellum

A region of the brain that plays a vital role in motor control, balance, and coordination.