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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
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. $11,550 for Lisa Tanaka, a 30 percent shareholder. $14,700 for Jared Zabaski, a 25 percent shareholder. $17,400 for Helen Talanian, a 20 percent shareholder. $5,350 for Steve Nielson, a 5 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 amounts as positive values.) a. North paid the bonuses to the employees on March 1 of year 2. Deductible accrued bonuses Year 1 b. North paid the bonuses to the employees on April 1 of year 2. Deductible accrued bonuses Year 1 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 other's stock in North. Deductible accrued bonuses Year 1 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 other's stock in North. Deductible accrued bonuses Year 1
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