Initially a calendar-year, accrual-basis corporation expects to have $1,000,000 in taxable income for the current year,

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Initially a calendar-year, accrual-basis corporation expects tohave $1,000,000 in taxable income for the current year, but then itdecides to implement a long-term bonus program for its employees.To do this, they plan to pay out $200,000 in bonuses to 20outstanding salespeople. The corporation immediately signs apromise to pay these bonuses to the employees. The bonuses will bepaid each February over the next 2 years. How much will its taxableincome for the current year be? $800,000, $900,000, $1,000,000 or$1,100,000.