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

question 109

Multiple Choice

Rolando's employer pays year-end bonuses each year on December 31. Rolando, a cash-basis taxpayer, would prefer not to pay tax on his bonus this year. So, he leaves town on December 31, 2019, and doesn't pick up his check until January 2, 2020. When should Rolando report his bonus?

• A)2020
• B)2019
• C)Rolando can choose the year to report the income
• D)It does not matter
• E)None of the choices are correct.

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Definitions:

Strategic Alliance

Partnership formed to create a competitive advantage for the businesses involved; in international business, a business strategy in which a company finds a partner in the country where it wants to do business.

Brand Partnership

A strategic collaboration between two or more brands with the aim to co-create value through joint marketing efforts, product development, or other business ventures.

Amazon's Web Site

Amazon's website is an online retail platform that offers a wide range of products, from books and electronics to clothing and household goods, facilitating purchases globally.

Nearshoring

Outsourcing production or services to locations near a company’s home base or closer to customers.