38. LO.2 Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations.
Question:
38. LO.2 Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations.
At the end of the year, Falcon had unpaid salaries of $45,000.
a. Calculate the salary deduction if Falcon is a cash basis taxpayer.
b. Calculate the salary deduction if Falcon is an accrual basis taxpayer.
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Related Book For 
South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts
ISBN: 9781285424484
37th Edition
Authors: William H. Hoffman Jr., William A. Raabe, James E. Smith, David M. Maloney, James C. Young
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