小编导读: USCPA美国注册会计师,是由AICPA美国注册会计师协会颁发,是全球财会证书中含金量*6的证书之一,因其具备全球签字权,可换全球八个国家的会计资格证而成为全球使用范围最广的财会证书。
Soma Corp. had $600,000 in compensation expense for book purposes in 2014. Included in this amount was a $50,000 accrual for 2014 non shareholder bonuses. Soma paid the actual 2014 bonus of $60,000 on March 1, 2015. In its 2014 tax return, what amount should Soma deduct as compensation expense?
A. $610,000
B. $550,000
C. $540,000
D. $600,000
Answer:A
Choice "a" is correct. An accrual basis employer may deduct bonuses paid to nonshareholder employees in the year of accrual if the bonuses are subsequently paid within 2 ½ months after the close of the tax year. Since the $50,000 accrued at year-end Year 1 was paid by March 15, Year 2 (2 ½ months), the $50,000 accrual is deductible as compensation expense. The additional $10,000 bonus paid on March 1, Year 2 is also deductible in Year 1, even though it was not accrued at year-end Year 1. Therefore, the total compensation is $600,000 + $10,000, or $610,000.
Choice "d" is incorrect. The additional $10,000 of bonus that was paid by March 15 of the next year is deductible in Year 1.
Choice "b" is incorrect. Both the $50,000 accrual and the additional $10,000 bonus paid is deductible, assuming it is paid by March 15, Year 2.
Choice "c" is incorrect. This answer assumes that the candidate is subtracting the entire $60,000 of bonus paid by March 15 from deductible compensation expense. This is incorrect because both the $50,000 accrual and the additional $10,000 paid by March 15, Year 2 are deductible.