Broadbill Corporation, a calendar year C corporation, has two unrelated cash method shareholders: Marcia owns 51% of the stock, and Zack owns the remaining 49%. Each shareholder is employed by the corporation at an annual salary of $240,000. During 2020, Broadbill paid each shareholder-employee $220,000 of his or her annual salary, with the remaining $20,000 paid in January 2021. How much of the 2020 salaries for Marcia and Zack is deductible by Broadbill in 2020? a. For a cash method taxpayer, the amount of the 2020 salaries that is deductible in 2020 is $.
b. For an accrual method taxpayer, in 2020, Broadbill can deduct $.