Required information [The following information applies to the questions displayed below.] Jorgensen High Tech Incorporated is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes. ⚫ $40,000 for Ken. • . • $30,000 for Jayne. • $20,000 for Jill. . $10,000 for Justin. How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios? Note: Leave no answer blank. Enter zero if applicable. c. Jorgensen paid the bonuses to the employees on March 1 of year 2, and there is a requirement that the employee must remain employed with Jorgensen on the payment date to receive the bonus. Answer is complete but not entirely correct. Deductible accrued bonuses Year 1 $ 100,000X

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 70IIP: In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine...
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Required information
[The following information applies to the questions displayed below.]
Jorgensen High Tech Incorporated is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued
and deducted the following bonuses for certain employees for financial accounting purposes.
⚫ $40,000 for Ken.
•
.
• $30,000 for Jayne.
• $20,000 for Jill.
.
$10,000 for Justin.
How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios?
Note: Leave no answer blank. Enter zero if applicable.
c. Jorgensen paid the bonuses to the employees on March 1 of year 2, and there is a requirement that the employee must remain
employed with Jorgensen on the payment date to receive the bonus.
Answer is complete but not entirely correct.
Deductible accrued bonuses Year 1
$ 100,000X
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Jorgensen High Tech Incorporated is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes. ⚫ $40,000 for Ken. • . • $30,000 for Jayne. • $20,000 for Jill. . $10,000 for Justin. How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios? Note: Leave no answer blank. Enter zero if applicable. c. Jorgensen paid the bonuses to the employees on March 1 of year 2, and there is a requirement that the employee must remain employed with Jorgensen on the payment date to receive the bonus. Answer is complete but not entirely correct. Deductible accrued bonuses Year 1 $ 100,000X
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