Jason's Employer Pays Year-End Bonuses Each Year on December 31

question 38

Multiple Choice

Jason's employer pays year-end bonuses each year on December 31.Jason,a cash basis taxpayer,would prefer to not pay tax on his bonus this year (and actually would prefer his daughter to pay tax on the bonus) .So,he leaves town on December 31,2013 and has his daughter,Julie,pick up his check on January 2^nd,2014.Who reports the income and when?

• A)Julie in 2013
• B)Julie in 2014
• C)Jason in 2013
• D)Jason in 2014
• E)None of these

---

Definitions:

Financialization

Financialization denotes the increasing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, shaping corporate and economic policies.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, pension funds, and investment firms.

Financialization

The increasing dominance of financial markets, financial motives, financial institutions, and elites in the economy, influencing social and economic policies.

Governmental Sovereignty

The supreme power or authority that a government holds over its territory and population without interference from outside sources.