Benita incurred a business expense on December 10, 2016, which she charged on her bank credit card. She paid the credit card statement which included the charge on January 5, 2017 . Which of the following is correct?

a. If Benita is a cash method taxpayer, she cannot deduct the expense until 2017.
b. If Benita is an accrual method taxpayer, she can deduct the expense in 2016.
c. If Benita uses the accrual method, she can choose to deduct the expense in either 2016 or 2017.
d. Only b. and c. are correct.
e. a., b., and c. are correct.

b
RATIONALE: Choice a. is incorrect because charging the expense on a bank credit card is treated as a constructive payment. Thus, as a cash method taxpayer, she can deduct the expense in 2016 . If Benita uses the accrual method, she deducts the expense in 2016 . In any event, she does not merely choose the year in which to deduct the expense (choice c.).