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Question - Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the remaining 49%. Each shareholder is employed by the corporation at an annual salary of $240,000. During 2020, Broadbill paid each shareholder-employee $220,000 of his or her annual salary, with the remaining $20,000 paid in January 2021. How much of the 2020 salaries for Marcia and Zack is deductible by Broadbill in 2020 if the corporation is:
1. A cash method taxpayer?
2. An accrual method taxpayer?
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