North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the end of year 1, North accrued and deducted the following bonuses for certain employees for financial accounting purposes.

• $7,500 for Lisa Tanaka, a 30 percent shareholder.
• $10,000 for Jared Zabaski, a 35 percent shareholder.
• $12,500 for Helen Talanian, a 20 percent shareholder.
• $5,000 for Steve Nielson, a 0 percent shareholder.

Unless stated otherwise, assume these shareholders are unrelated. How much of the accrued bonuses can North Inc. deduct in year 1 under the following alternative scenarios? (Leave no answer blank. Enter zero if applicable. Input all amount as positive values.)

c. North paid the bonuses to employees on March 1 of year 2 and Lisa and Jared are related to each other, so they are treated as owning each others stock in North.

Deductible accured bonuses:

[The following information applies to the questions displayed below.]

North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the end of year 1, North accrued and deducted the following bonuses for certain employees for financial accounting purposes.

• $7,500 for Lisa Tanaka, a 30 percent shareholder.
• $10,000 for Jared Zabaski, a 35 percent shareholder.
• $12,500 for Helen Talanian, a 20 percent shareholder.
• $5,000 for Steve Nielson, a 0 percent shareholder.

Unless stated otherwise, assume these shareholders are unrelated. How much of the accrued bonuses can North Inc. deduct in year 1 under the following alternative scenarios? (Leave no answer blank. Enter zero if applicable. Input all amount as positive values.)

d. North paid the bonuses to employees on March 1 of year 2 and Lisa and Helen are related to each other, so they are treated as owning each others stock in North.

Deductible accured bonuses:

Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $200,000 in the current year. Assume TTT is profitable and has a 21 percent tax rate. What is TTT Corporations after-tax cost of paying Lynettes salary?