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1.At the end of the current year, Z Inc., an accrual-basis, calendar-year tax payer, accrued and deducted the following bonuses for its employees: For L,
1.At the end of the current year, Z Inc., an accrual-basis, calendar-year tax payer, accrued and deducted the following bonuses for its employees:
For L, a 30% shareholder - $7,500
For J, a 35% shareholder - $10,000
For H, a 20% shareholder - $12,500
For S, a 0% shareholder - $5,000
If, Z Inc., paid the bonuses on March 1 of the next year, how much of the accrued bonuses can the company deduct in the current year?
a.$5,000
b.$17,500
c.$27,500
d.$35,000
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