On December 31, 2014, Flamingo, Inc

question 26

True/False

On December 31, 2014, Flamingo, Inc., a calendar year, accrual method C corporation, accrues a bonus of $50,000 to its president (a cash basis taxpayer), who owns 75% of the corporation's outstanding stock. The $50,000 bonus is paid to the president on February 2, 2015. For Flamingo's 2014 Form 1120, the $50,000 bonus will be a subtraction item on Schedule M-1.

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Definitions:

Process Consultation

A method of organizational development where a consultant assists a client organization in understanding and improving its processes.

Acceptable Solution

A solution that meets the minimum requirements and is agreed upon by all parties involved.

Adversarial Intervention

A confrontational approach where an external party gets involved in a dispute to support one side, potentially leading to conflict.

Enforces Solution

A method of conflict resolution where an external authority imposes a decision on the disputing parties.