Canary Corporation, an accrual method C corporation, uses the calendar year for tax purposes. Leticia, a cash method taxpayer, is both a shareholder of Canary and the corporation's CFO. On December 31, 2012, Canary has accrued a $75,000 bonus to Leticia. Describe the tax consequences of the bonus to Canary and to Leticia under the following independent situations.
Definitions:
Biopsychosocial Approach
A holistic perspective in healthcare and psychology that integrates biological, psychological, and social factors in understanding and treating illness.
Integrated Explanation
A comprehensive understanding that combines elements from various sources or theories to provide a complete account of a phenomenon.
Mental Processes
Internal, covert activities of the mind such as thinking, reasoning, and remembering.
Cultural
Pertaining to the customs, beliefs, arts, and collective identity and behavior of a society or community.
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