Question

jorgensen high tech inc. is a calendar year, accrual method taxpayer. at the end of year 1, jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes.
$70,000 for Ken
$52,500 for Jayne
$35,000 for jill
$17,500 for justin
how much of the accrued bonuses can jorgensen deduct in year 1 under the following alternative scenarios?(leave no answer blank. enter zero if applicable. )
b) jorgensen paid the bonuses to the employees on April 1 of year 2.
deductible accrued bonuses

Answer 1