Solutions to Chapter 4 Problems
Amy, a cash-basis taxpayer, received a salary of $100,000 during year 1, year 2, and year 3. Amy also was awarded a bonus of $30,000 that was accrued by Amy's employer, Vargus Corporation (an accrual-basis, calendar-year C corporation), in December of year 1 but the bonus was not paid until March 31 of year 2. ................
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