Compute ivory corporations current year deduction

Assignment Help Financial Management

Reference no: EM131957808

Ivory Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelated to each other.

Craig owns 35% of the stock, and Oscar owns the remaining 65%.

During the current year, Ivory paid a salary of $100,000 to each shareholder. On December 31, of the current year, Ivory accrued a bonus of $25,000 to each shareholder.

Assuming that the bonuses are paid to the shareholders on February 3, of the next year, compute Ivory Corporation's current year deduction for the above amounts.

Reference no: EM131957808

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