Explore BrainMass

Explore BrainMass

    salary deduction

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    38. Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations. At the end of the year, Falcon had unpaid salaries of $45,000.

    a. Calculate the salary deduction if Falcon is a cash basis taxpayer.
    b. Calculate the salary deduction if Falcon is an accrual basis taxpayer.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:22 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculate-salary-deduction-falcon-cash-basis-taxpayer-95389

    Solution Preview

    38. a. Under the cash method, Falcon can deduct only the salaries paid of $500,000. The $45,000 of unpaid salaries can be deducted ...

    Solution Summary

    For one finance question, this solution calculates the salary deduction if Falcon is a cash basis taxpayer. It also calculates the salary deduction if Falcon is an accrual basis taxpayer.

    $2.19

    ADVERTISEMENT