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