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Problem 06-29 (Static) [LO 6-9] Parmco, a calendar year corporation, made the following accruals for 2020 financial statement purposes: Required: a. $30,000 expense and
Problem 06-29 (Static) [LO 6-9] Parmco, a calendar year corporation, made the following accruals for 2020 financial statement purposes: Required: a. $30,000 expense and $30,000 liability for Henry Parmenter's 2021 performance bonus. Henry is Parmco's president and sole shareholder. The corporation paid the bonus on January 20, 2022. Determine how much of the accrued expense is deductible on Parmco's 2021 federal tax return. b. $10,000 expense and $10,000 liability for Susan Colter's 2021 performance bonus. Susan is Parmco's treasurer; she is not a relative of Henry Parmenter. The corporation paid the bonus on April 1, 2022. Determine how much of the accrued expense is deductible on Parmco's 2021 federal tax return. c. $591,000 expense and $591,000 liability for unpaid December salaries. Parmco paid the entire amount to its workforce on January 5, 2022. Determine how much of the accrued expense is deductible on Parmco's 2021 federal tax return. Complete this question by entering your answers in the tabs below. Required A Required B Required C $30,000 expense and $30,000 liability for Henry Parmenter's 2021 performance bonus. Henry is Parmco's president and sole shareholder. The corporation paid the bonus on January 20, 2022. Determine how much of the accrued expense is deductible on Parmco's 2021 federal tax return. Deduction Required A Required B >
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