Jason's Employer Pays Year-End Bonuses Each Year on December 31

question 9

Multiple Choice

Jason's employer pays year-end bonuses each year on December 31. Jason, a cash-basis taxpayer, would prefer not to pay tax on his bonus this year (and actually would prefer his daughter to pay tax on the bonus) . So, he leaves town on December 31, 2019, and has his daughter, Julie, pick up his check on January 2, 2020. Who reports the income and when?

• A)Julie in 2020
• B)Julie in 2019
• C)Jason in 2019
• D)Jason in 2020
• E)None of the choices are correct.

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Definitions:

Horizontal Line

A straight line that has a constant y-coordinate for all its points, indicating it is parallel to the x-axis.

Slope

The measure of steepness or incline of a line, indicating the rate of change between two variables.

Continually Changing

Describes a state of constant evolution or modification, not remaining static.

Variable on the Vertical Axis

Refers to the dependent variable in a graph or chart, plotted along the vertical (Y) axis, whose value depends on the independent variable.