A. Jenson Company, an accrual basis taxpayer, paid salaries of $125,000 in 2017 and had a salary payable of $20,000 at the end of 2017. The salary of $20,000 owed to employees at the end of 2017 was paid in 2018. What should be the amount of the deduction for salary expense in 2017 and 2018?

Group of answer choices

$145,000 in 2017 and $0 in 2018

$125,000 in 2017 and $0 in 2018

$125,000 in 2017 and $20,000 in 2018

$20,000 in 2017 and $0 in 2018

B. Mac Corporation, a computer maker, donated computers to a qualified educational institution. The computers were manufactured by Mac and the educational institution will use the computers for research and research training. Mac’s basis in the computers is $40,000, and the fair market value is $75,000. What is the amount of Mac’s tax deduction for the computers? Ignore the taxable income limitation.

Group of answer choices

$40,000

$57,500

$75,000

$80,000