Kevin, a cash basis taxpayer, received the following from his
employer during 2019: Salary of $80,000; 2018 bonus of $12,000
received in 2019 (the 2018 bonus was not paid until 2019 because
Kevin’s employer suffered a computer crash and could not complete
the bonus calculations in a timely manner). In addition, Kevin
earned a 2019 bonus of $15,000 that was to be paid by the end of
December 2019. However, in December, Kevin told his employer to
delay the payment of the bonus until January 2020, when Kevin plans
to retire. Determine the effect of the above on Kevin’s gross
income in 2019?
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