Business
Business, 04.12.2019 05:31, 001035783

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.
• s7,500 for lisa tanaka, a 30 percent shareholder.
• sio, ooo for jared zabaski, a 35 percent shareholder.
• s12,500 for helen talanian, a 20 percent shareholder.
• s5,ooo for steve nielson, a o 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?
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.

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North inc. is a calendar-year c corporation, accrual-basis taxpayer. at the end of year 1, north acc...

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