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The ABC Supermarket has 200 employees in its workforce. The accounting records for the year 2021 reflect that the entity incurred a salary expense in
The ABC Supermarket has 200 employees in its workforce. The accounting records for the year 2021 reflect that the entity incurred a salary expense in the amount of $800,000. During January 2022, the supermarket prepared the withholding receipts (W-2) for its employees and submitted them to the Department of the Treasury through the System Unified Internal Revenue Service (SURI). The withholding statements (W-2) total $720,000. What amount can the supermarket claim as an ordinary and necessary expense for 2021. Reason.
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