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Problem 12-23 (LO 12-1) (Algo) [The following information applies to the questions displayed below.] North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the
Problem 12-23 (LO 12-1) (Algo) [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. $15,050 for Lisa Tanaka, a 25 percent shareholder. $16,900 for Jared Zabaski, a 30 percent shareholder. $13,200 for Helen Talanian, a 25 percent shareholder. $5,550 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.) Problem 12-23 Part b (Algo) b. North paid the bonuses to the employees on April 1 of year 2. Deductible accrued bonuses Year 1 $ 50,700 Problem 12-23 Part c (Algo) 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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