Under a reimbursement plan that has been in effect for 5 years, Simmons Corporation advances travel expenses to its sales employees. The advances are deducted from the employees' commissions as they are earned. The employees have an unconditional obligation to repay any advances not repaid through the commission offset. Up to the current year, the sales employees' commissions have never been sufficient to fully off- set the advances made under the plan. To boost morale, Simmons charges off the bal- ance of the advances. What are the tax effects of the reimbursement plan and the subsequent write-off of the advance balances?