BZD, a calendar year corporation, made the following year-end accruals for 2020 financial statement purposes: Required: a. $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. b. $40,000 expense and $40,000 liability for the CEO's 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. c. $219,700 expense and $219,700 liability for accumulated vacation pay. No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. Complete this question by entering your answers in the tabs below. Required A Required B Required C $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. Deduction
BZD, a calendar year corporation, made the following year-end accruals for 2020 financial statement purposes: Required: a. $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. b. $40,000 expense and $40,000 liability for the CEO's 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. c. $219,700 expense and $219,700 liability for accumulated vacation pay. No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. Complete this question by entering your answers in the tabs below. Required A Required B Required C $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return. Deduction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please see image
![**BZD Corporation Accruals for 2020 Financial Statements**
BZD, a calendar year corporation, made the following year-end accruals for the 2020 financial statement purposes:
**Required:**
a. **$55,000 Expense and $55,000 Liability for Unpaid December Salaries**
BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return.
b. **$40,000 Expense and $40,000 Liability for the CEO’s 2020 Bonus**
BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
c. **$219,700 Expense and $219,700 Liability for Accumulated Vacation Pay**
No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
**Instructions:**
Complete this question by entering your answers in the tabs below.
- **Required A**
- **Required B**
- **Required C**
**Example Entry:**
- $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return.
**Deduction: [Input Field]**](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F449ae24f-0398-4a86-aaa1-a3aa85768120%2Fb5d3a0b4-2ac6-4234-bc9e-6ed367688118%2F75n6k1q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**BZD Corporation Accruals for 2020 Financial Statements**
BZD, a calendar year corporation, made the following year-end accruals for the 2020 financial statement purposes:
**Required:**
a. **$55,000 Expense and $55,000 Liability for Unpaid December Salaries**
BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return.
b. **$40,000 Expense and $40,000 Liability for the CEO’s 2020 Bonus**
BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
c. **$219,700 Expense and $219,700 Liability for Accumulated Vacation Pay**
No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
**Instructions:**
Complete this question by entering your answers in the tabs below.
- **Required A**
- **Required B**
- **Required C**
**Example Entry:**
- $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return.
**Deduction: [Input Field]**
![**BZD, a calendar year corporation, made the following year-end accruals for 2020 financial statement purposes:**
**Required:**
a. $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
b. $40,000 expense and $40,000 liability for the CEO’s 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
c. $219,700 expense and $219,700 liability for accumulated vacation pay. No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
---
**Complete this question by entering your answers in the tabs below.**
- **Required A**
- **Required B**
- **Required C**
---
**Required B:**
$40,000 expense and $40,000 liability for the CEO’s 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return.
---
**Deduction: [ ]**](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F449ae24f-0398-4a86-aaa1-a3aa85768120%2Fb5d3a0b4-2ac6-4234-bc9e-6ed367688118%2F0b5ry3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**BZD, a calendar year corporation, made the following year-end accruals for 2020 financial statement purposes:**
**Required:**
a. $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
b. $40,000 expense and $40,000 liability for the CEO’s 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
c. $219,700 expense and $219,700 liability for accumulated vacation pay. No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZD’s 2020 federal tax return.
---
**Complete this question by entering your answers in the tabs below.**
- **Required A**
- **Required B**
- **Required C**
---
**Required B:**
$40,000 expense and $40,000 liability for the CEO’s 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZD's 2020 federal tax return.
---
**Deduction: [ ]**
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