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Broadbill corporation a calendar year c corporation

03/05/2021 Client: muhammad11 Deadline: 2 Day

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 2018, Broadbill paid each shareholder-employee $220,000 of his or her annual salary, with the remaining $20,000 paid in January 2019. How much of the 2018 salaries for Marcia and Zack is deductible by Broadbill in 2018 if the corporation

is:
a. A cash method taxpayer?
b. An accrual method taxpayer'

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