Bart owns 100% of the stock of Octo Corporation, which uses the accrual method. Bart's sister Samantha, a cash-method taxpayer, did some advertising work for Octo in November 2018. In December, Octo received a billing statement from Samantha for $5,000 and paid Samantha the $5,000 in January 2019. Samantha is a calendar-year taxpayer. When may Octo deduct the $5,000?
A. 2018
B. 2019
C. Either 2018 or 2019
D. The expense is not deductible since Samantha is Bart's sister.
Answer: B
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