Question: 2 Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations. At the end of the year, Falcon had unpaid

2 Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations. At the end of the year, Falcon had unpaid salaries of $45,000.

a. Calculate the salary deduction if Falcon is a cash basis taxpayer.

b. Calculate the salary deduction if Falcon is an accrual basis taxpayer.

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