The Kane Corporation is an accrual basis taxpayer. State law requires that Kane acquire workers’ compensation insurance from a third-party carrier or maintain a self-funded workers’ compensation insurance plan. Kane has decided to create a selffundedworkers’ compensation plan and pay $6 per month (the state minimum) into the fund for each of its 800 employees. During the year, the corporation pays $52,500 in workers’ compensation benefits to its employees. How much can Kane deduct as workers’ compensation expense for the year? Discuss.