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North Incorporated 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 Incorporated 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. $11,150 for Lisa Tanaka, a 30 percent shareholder. $17,300 for Jared Zabaski, a 30 percent shareholder. $22,300 for Helen Talanian, a 20 percent shareholder. $7,450 for Steve Nielson, a O percent shareholder. Unless stated otherwise, assume these shareholders are unrelated. How much of the accrued bonuses can North Incorporated deduct in year 1 under the following alternative scenarios? Note: Leave no answer blank. Enter zero if applicable. Input all amounts as positive values. Required: a. North paid the bonuses to the employees on March 1 of year 2. b. North paid the bonuses to the employees on April 1 of year 2. 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. 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. Complete this question by entering your answers in the tabs below
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