Mr John Carre Owns 67% of the Stock of JC

question 100

Multiple Choice

Mr. John Carre owns 67% of the stock of JC Inc. and is employed as the corporation's CEO. The corporation is a calendar year, accrual basis taxpayer. On December 14, 2016, the board of directors authorized a $45,000 year-end bonus for Mr. Carre, which was paid to him on February 1, 2017. In which year can JC Inc. deduct the bonus?

• A) 2016.
• B) 2017.
• C) JC Inc. can deduct only $14,850 (33%) of the bonus in 2016.
• D) JC Inc. can never deduct the bonus.

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Definitions:

Internal Integration

The process of aligning and harmonizing an organization's internal operations and departments to work efficiently together.

Team Boundaries

The defined limits and roles within a team that dictate interactions and responsibilities among its members.

Force

In the context of organizational behavior, it signifies the power or influence exerted to accomplish a goal or mandate change.

External Adaptation

The process through which an organization or individual adjusts to changes in the external environment to survive and thrive.