Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the remaining 49%. Each shareholder is employed by the corporation at an annual salary of $240,000. During 2019, Broadbill paid each shareholder-employee $220,000 of his or her annual salary, with the remaining $20,000 paid in January 2020.

Determine how much of the 2019 salaries for Marcia and Zack is deductible by Broadbill in 2019 if the corporation is (a) a cash method taxpayer and (b) an accrual method taxpayer.

If an accrual method taxpayer:

In 2019, Broadbill can deduct:

*I thought the answer was $480,000 and I also got $440,000 and both are wrong. My next guess is $460,000