On December 31, 2018, Peregrine Corporation, an Accrual Method, Calendar

question 99

Multiple Choice

On December 31, 2018, Peregrine Corporation, an accrual method, calendar year taxpayer, accrued a performance bonus of $100,000 to Charles, a cash basis, calendar year taxpayer. Charles is president and sole shareholder of the corporation. When can Peregrine deduct the bonus?

• A) In 2018, if the bonus was authorized by the Board of Directors and payment was made on or before April 15, 2019.
• B) In 2019, if payment was made at any time during that year.
• C) In 2018, if payment was made on or before April 15, 2019.
• D) In 2019, but only if payment was made on or before April 15, 2019.
• E) None of the above.

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Definitions:

Generalize

The process of applying the findings from a sample to a larger population, with the assumption that the sample accurately represents the whole.

Confederates

Participants in a study who have been briefed by the researcher to behave in a particular way.

Deceiving

The act of misleading or giving a false impression.

Plagiarism

The practice of taking someone else's work or ideas and passing them off as one's own without proper acknowledgment.