What amounts from the balance sheet below are deductible for 2019 to get Corporate taxable income from these accrued items?
|
Balance sheet |
12/31/19 |
12/31/18 |
|
|
Accrued Vacation |
13,800 |
10,700 |
|
|
Vacation Paid by March/15 of following year |
5,800 |
3,700 |
|
|
Allowance for Uncollectible Accts |
4,100 |
6,100 |
|
|
Prepaid Insurance |
10,400 |
12,700 |
|
|
Accrued Litigation Costs |
34,000 |
0 |
|
|
Accrued Bonuses (Chief Executive) |
38,000 |
39,000 |
what amount is deductible for tax purposes C Corp?
1. Corporation uses the 12-month rule, it pays one annual insurance policy on Dec/31 each year.
2. Bonuses paid the following year before the 2 1/2 month on March 13.
3. (earned but unused vacation)Paid by March 15 following year.
4. Bad debt by allowance method (% sales) Based on Sales, $7,400 was accrued in company books.
5. Estimate loss in a case was 34,000.
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