(Answered) Question - b corporation an accrual basis taxpayer is owned

Accounting

Question - B Corporation, an accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 20X1, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on March 1, 20X2; the interest is not paid until 20X3.

How much can B Corporation deduct on its 20X2 tax return?

a. $0

b. $4,000

c. $15,000

d. $19,000

e. $12,000

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