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On December 10 of the Past Year Dell Corporation (A

Question 53

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On December 10 of the past year Dell Corporation (a calendar-year taxpayer)accrued 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 of the current year. What is Dell's deduction for last year? What is Dell's deduction for this year?

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Dell is allowed $0 deduction f...

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