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:

Exclude Evidence

A legal process where certain information is prevented from being presented in court because it does not meet specified criteria or rules.

Final Statement

A conclusive written summary or account that details the final positions or outcomes of a particular event, process, or financial period.

Admit Evidence

The process by which a court agrees to consider certain facts or documents as part of the information used to make a legal decision.

Contradictory

Describes statements, beliefs, or ideas that are directly opposed to each other and cannot be true at the same time.