EBK CONCEPTS IN FEDERAL TAXATION 2019
26th Edition
ISBN: 9781337671774
Author: Murphy
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 6, Problem 40P
To determine
Determine the amount to be deducting as salary expense and explain whether the given answer will change M corporation and payments are usual of other companies of same size in the industry.
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Lynette is the CEO of a publicly traded company TT company and earns a salary of $380,000 in the current year.
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Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert's $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000.
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EBK CONCEPTS IN FEDERAL TAXATION 2019
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