Crimson Corporation, corporation, has two cash-method, calendar-year shareholders who are unrelated to each other. Sarah owns 40% of the stock, and Alex owns the remaining 60%. During the current year, Crimson paid a salary of $150,000 to each shareholder. On December 31, Crimson accrued a bonus of $30,000 for each shareholder. Assuming that the bonuses are paid to the shareholders on March 2 of the next year, compute Crimson Corporation's current year deduction for the above amounts. a calendar year, accrual method C a. $330,000 b. $300,000 c. $240,000 d. $180,000 e. None of the above

Crimson Corporation, corporation, has two cash-method, calendar-year shareholders who are unrelated to each other. Sarah owns 40% of the stock, and Alex owns the remaining 60%. During the current year, Crimson paid a salary of $150,000 to each shareholder. On December 31, Crimson accrued a bonus of $30,000 for each shareholder. Assuming that the bonuses are paid to the shareholders on March 2 of the next year, compute Crimson Corporation's current year deduction for the above amounts. a calendar year, accrual method C a. $330,000 b. $300,000 c. $240,000 d. $180,000 e. None of the above

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 17P

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