On December 31,2010,Lavender,Inc

question 52

True/False

On December 31,2010,Lavender,Inc. ,an accrual basis C corporation,accrues a $90,000 bonus to Barry,its vice president and a 70% shareholder.Lavender pays the bonus to Barry,who is a cash basis taxpayer,on March 15,2011.Lavender can deduct the bonus in 2010,the year in which Barry's services were performed.

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Definitions:

Emotionally Committed

A state or condition in which an individual is deeply invested in an emotional sense, such as in a relationship or cause, leading to a strong sense of loyalty and dedication.

Disapprove

To have or express an unfavorable opinion about something or someone.

Mate Guarding

Efforts to prevent one’s sexual partner from mating with someone else in order to avoid the costs of rearing offspring that do not help to propagate one’s genes.

Propagate Genes

The process of passing genetic information from one generation to the next through reproduction.