Troy, a cash basis taxpayer, is employed by Eagle also a cash basis taxpayer. Troy is a full-time employee of the and receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from clients he serviced during the year. Determine the tax consequences of the following events to the and to Troy:
a. On December 31, 2015, Troy was visiting a customer. The customer gave Troy a $10,000 check payable to the for appraisal services Troy performed during 2015. Troy did not deliver the check to the until January 2016.
b. The facts are the same as in (a), except that the is an accrual basis taxpayer and Troy deposited the check on December 31, but the bank did not add the deposit to the corporation’s account until January 2016.
c. The facts are the same as in (a), except that the customer told Troy to hold the check until January 2016 when the customer could make a bank deposit that would cover the check.
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