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John is the owner of XYZ Company, a small business that uses the cash basis of accounting for tax purposes. In 2023, XYZ Company paid

John is the owner of XYZ Company, a small business that uses the cash basis of accounting for tax purposes. In 2023, XYZ Company paid John the following compensation:
Type of Payment Amount
Salary $60,000
Dividends $20,000
How should XYZ Company treat these payments for tax deduction purposes?

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