Ivory Corporation,a Calendar Year,accrual Method C Corporation,has Two Cash Method,calendar

question 56

Multiple Choice

Ivory Corporation,a calendar year,accrual method C corporation,has two cash method,calendar year shareholders who are unrelated to each other.Craig owns 35% of the stock,and Oscar owns the remaining 65%.During 2015,Ivory paid a salary of $100,000 to each shareholder.On December 31,2015,Ivory accrued a bonus of $25,000 to each shareholder.Assuming that the bonuses are paid to the shareholders on February 3,2016,compute Ivory Corporation's 2015 deduction for the above amounts.

• A)$250,000
• B)$225,000
• C)$200,000
• D)$125,000
• E)None of above

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Definitions:

Division of Labor

the allocation of different tasks and roles to different individuals or groups in a society, often based on factors such as skill, age, or gender.

Centralized Political Organization

A governmental structure where power and decision-making processes are concentrated in a central location or authority.

Markets

Systems or environments where parties engage in the exchange of goods, services, or information, often regulated by supply and demand.

Pastoral Nomads

Groups of people who move with their herds of domesticated animals from one place to another in search of pasture, practicing a nomadic lifestyle dependent on livestock.