Tabco Inc.,a calendar year,accrual basis corporation,accrued $48,800 wage and salary expense and a corresponding liability at the end of 2019.How much of the accrued expense is deductible in 2019?

Question

Quizplus · Accepted Answer

Under the accrual method, expenses are deductible when they are incurred. However, for wages and salaries, they must be paid within 2.5 months after the end of the tax year (by March 15 for a calendar year taxpayer) to be deductible in the prior year.

Tabco Inc,A Calendar Year,accrual Basis Corporation,accrued $48,800 Wage and Salary Expense