On December 31,2015,Peregrine Corporation,an Accrual Method,calendar Year Taxpayer,accrued a Performance

question 52

Multiple Choice

On December 31,2015,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 2015,if the bonus was authorized by the Board of Directors and payment was made on or before March 15,2016.
• B)In 2016,if payment was made at any time during that year.
• C)In 2015,if payment was made on or before March 15,2016.
• D)In 2016,but only if payment was made on or before March 15,2016.
• E)None of the above.

---

Definitions:

Specific Purpose

The particular goal or intention behind a speech, presentation, or written document.

Business Message

Information or a communication conveyed by a company to its employees, customers, or stakeholders.

Realistic Goals

Objectives that are practical and achievable, taking into account current resources and constraints.

Good Business Sense

The ability to make sound judgments and decisions in the context of managing and growing a business.