Salary deduction if falcon is cash basis taxpayer

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Reference no: EM13864532

Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations. At the end of the year, Falcon had unpaid salaries of $45,000.

a. Calculate the salary deduction if Falcon is a cash basis taxpayer

b. Calculate the salary deduction if Falcon is an accrual basis taxpayer

Reference no: EM13864532

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