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Business, 08.10.2020 17:01 genyjoannerubiera
Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the remaining 49%. Each shareholder is employed by the corporation at an annual salary of $240,000. During 2020, Broadbill paid each shareholder-employee $220,000 of his or her annual salary, with the remaining $20,000 paid in January 2021. Determine how much of the 2020 salaries for Marcia and Zack is deductible by Broadbill in 2020 if the corporation is (a) a cash method taxpayer and (b) an accrual method taxpayer.
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