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.© BrainMass Inc. brainmass.com June 3, 2020, 7:22 pm ad1c9bdddf
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 ...
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.