Alfred's Enterprises, an Unincorporated Entity, Pays Employee Salaries of $100,000

question 51

Essay

Alfred's Enterprises, an unincorporated entity, pays employee salaries of $100,000 during the year.At the end of the year, $12,000 of additional salaries have been earned but not paid until the beginning of the next year.
a.Determine the amount of the deduction for salaries if Alfred is a cash method taxpayer.
b.Determine the amount of the deduction for salaries if Alfred is an accrual method taxpayer.

---

Definitions:

Goal-setting Programs

Initiatives or strategies designed to establish objectives and plans to achieve them within a specified timeframe.

Planning Component

An essential part of the planning process that includes defining objectives, strategies, and actions to achieve goals.

Interim Reviews

Evaluations or assessments conducted at specific intervals during a project or process, before its completion.

Performance Evaluation

The formal assessment of an individual's work performance, often used to determine promotions, salary adjustments, and development needs.