Derik Inc,a Calendar Year,accrual Basis Corporation,accrued $278,000 Vacation Pay Expense and and a Corresponding

question 93

Multiple Choice

Derik Inc.,a calendar year,accrual basis corporation,accrued $278,000 vacation pay expense and a corresponding liability at the end of 2019.Derik paid $22,000 of the accrued liability to employees who took vacation between January 1 and March 15,2020.How much of the accrued vacation pay expense is deductible in 2019?

• A)None of the accrued expense is deductible in 2019.
• B)$22,000.
• C)$256,000.
• D)The entire accrued expense is deductible in 2019.

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Definitions:

Clozaril

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