Murray Inc., a calendar year, accrual basis corporation, accrued $946,000 accrued salary and wage expense at the end of 2015. Murray paid the entire amount of the accrued liability on January 13, 2016. Murray can deduct the entire $946,000 accrued expense in 2015.

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Accrued salary and wage expense can be deducted in the year it is accrued, even if it is paid in the following year. Therefore, Murray can deduct the entire $946,000 accrued expense in the 2015 tax year.