BZD, a calendar year corporation, made the following year-end accruals for 2019 financial statement purposes. In each case, determine how much of the accrued expense is deductible on BZD’s 2019 federal tax return. 

a. $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2020. 

b. $40,000 expense and $40,000 liability for the CEO’s 2019 bonus. BZD paid $20,000 to the CEO on March 1, 2020, and the remaining $20,000 on May 1, 2020. BZD and the CEO are not related parties. 

c. $219,700 expense and $219,700 liability for accumulated vacation pay. No employees took vacation between January 1 and March 15, 2020.