1. Prasad Corporation is a calendar-year, accrual-method taxpayer. Prasad was formed and started its business activities on January 1, 2020. It reported the following information for 2020. Indicate Prasads deductible amount for 2020, if any, in each of the following alternative scenarios.

e. Prasad hired Stage Company to repair another piece of equipment. On November 1, 2020, Prasad paid $7,400 for the repairs. She expects the repairs to be done late January 2021.

f. At the end of 2020, Prasad accrued $31,000 in wages payable and $44,000 in bonuses payable. Prasad paid the wages due January 10, 2021. It paid $11,000 of the bonuses by January 15^th, 2021, another $11,000 by February 15^th, another $11,000 by March 15^th, and the remaining $11,000 by April 15^th.

g. Prasads ending allowance for doubtful accounts was $15,000. Bad debt expense recorded on the income statement was $16,000.