Murray Inc., a calendar year, accrual basis corporation, accrued $946,000 salary and wage expense at the end of 2018. Murray paid the entire amount of the accrued liability on January 13, 2019. Murray can deduct the entire $946,000 accrued expense in 2018.

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According to the accrual basis of accounting, expenses are recognized when they are incurred, regardless of when they are paid. Therefore, Murray can deduct the entire $946,000 accrued expense in 2018, even though it was paid in January 2019.