Ivory Corporation, a Calendar Year, Accrual Method C Corporation, Has

question 67

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 55% of the stock, and Oscar owns the remaining 45%. During 2011, Ivory paid a salary of $200,000 to each shareholder. On December 31, 2011, Ivory accrued a bonus of $50,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 1, 2012, compute Ivory Corporation's 2011 deduction for the above amounts.

• A) $0.
• B) $250,000.
• C) $400,000.
• D) $450,000.
• E) $500,000.

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Definitions:

Global Arrays

Global arrays are arrays that are declared outside of any function or class and can be accessed and modified from any part of the program.

Static

A keyword in programming that makes a variable or function persistent throughout the life of a program.

Auto Local Arrays

Auto local arrays are automatically allocated arrays within a function, their size is determined at compile time, and they are deallocated when the function returns.

Pass By Value

A method of parameter passing where a copy of the variable's value is passed to the function, protecting the original value from modification.