Bendom Incorporated, a calendar year, accrual basis corporation, hired Rukel Company to provide professional services. Rukel completed the services on November and immediately sent Bendom a bill for $ Bendom paid the bill on January Which of the following statements is false?
Multiple Choice
If Bendom and Rukel are related parties, Rukel must report $ income on its tax return regardless of its method of accounting.
If Rukel uses the accrual method, it must report $ income on its tax return.
If Bendom and Rukel are unrelated parties, Bendom can deduct the $ accrued expense on its tax return.
If Bendom and Rukel are related parties, Bendom can deduct the $ accrued expense on its tax return only if Rukel uses the accrual method of accounting.
