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On December 10, 2018, Dell Corporation (A Calendar- Year Taxpayer)

Question 57

Essay

On December 10, 2018, Dell Corporation (a calendar- year taxpayer) accrues an obligation for a $100,000 bonus to Muriel, a sales representative who had had an outstanding year. Muriel owns no Dell Corporation stock. The bonus is paid on May 5, 2019. What is Dell's deduction for 2018? What is Dell's deduction for 2019?

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Dell is allowed $0 deduction f...

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