Conrolling shareholder-employee of southwest corporation

Assignment Help Financial Accounting
Reference no: EM13749199

laura, the conrolling shareholder and an employee of southwest corporation, recives an anual salary of 750000. Based on several factors including the size of the corporation's operations and comparision of salary received by officers of comparably-size corporations, the IRS contends that Laura's salary should be no higher than $600000. The court upheld the IRS's position. As a result, which of the following is true?

a. $600,000 is deductible by the corporation; $750,000 is taxable to Laura

b. $750,000 is deductible by the corporation; $750,000 is taxable to Laura

c. $600,000 is deductible by the corporation; $600,000 is taxable to Laura

d. $750,000 is deductible by the corporation; $600,000 is taxable to Laura

Reference no: EM13749199

Questions Cloud

What is mark to market accounting : What is mark to market accounting? Which stakeholder do you think will be most affected in mark to market accounting? Identify two critical accounts that will be most affected by the suspension of mark to market.
How did this compare to the annuity option : Review the Time Value of Money simulation. Which option did you initially choose, cash or annuity? How were your winnings affected by the cash option? How did this compare to the annuity option?
What is the total purchase of tennis racquets : What is the total purchase of tennis racquets? Why?What is the consumer surplus? Why?What is the increase in consumer surplus when the market price drops to $ 50?What is the increase in producer surplus when the market jumps to 80?Deduce and explain ..
The strayer library or a newspaper : Identify at least four (4) key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8. Apply one (1) of the following economic concepts (supply, demand..
Conrolling shareholder-employee of southwest corporation : laura, the conrolling shareholder and an employee of southwest corporation, recives an anual salary of 750000. Based on several factors including the size of the corporation's operations and comparision of salary received by officers of comparably-si..
Nominal interest compounded monthly : Monthly deposits are made into an account paying 6.8% nominal interest compounded monthly. If the objective of these deposits is to accumulate at least $95,000 by the end of the 5th yr, what is the smallest amount of each deposit that will accomplish..
Discuss the crimes they committed : 1.Discuss the crimes they committed, the reason(s) provided as their defense, then discuss how the public responded (press/media coverage) and how the criminal justice system processed the case (trial by judge, jury, plea to full charges, lessor char..
Accounting reflects both a willingness to change : The Act of 2010 to modernize German accounting reflects both a willingness to change as well as to retain traditional German accounting practices. Required Do you agree with the preceding statement? Explain.
Discuss and explain the efficient markets hypothesis : Discuss and explain the efficient markets hypothesis. Does this mean that the hot stock tip I received from my friend "Lucky" Lomax is no good?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Decision based on sell or process further of a

decision based on sell or process further of a product.missou mining company mines an iron ore called alpha. during the

  Eliminate the consolidation process

Ontario still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intercompany profit that should be eliminated in the consolidation process at the end of 2011 is

  What is the sub-game perfect outcome for a ship

What is the sub-game perfect outcome for a ship with 100 pirates aboard? Suppose instead that a strict majority were required to pass a split

  An auditor noted that client sales increased 10 for the

an auditor noted that client sales increased 10 for the year. at the similar time cost of goods sold as a percentage

  Compute the appropriate present value

For each of the following situations, identify the correct factor to use from Table 1 or Table 2 in Appendix C. Also, compute the appropriate present value.

  Purpose general journal entries to record the transactions

Purpose general journal entries to record the above transactions.

  Classify the lease as an operating lease or finance

In each independent scenario, indicate whether AMC would classify the lease as an operating lease or finance lease under U.S. GAAP. Assume the lease agreement has not met any of the other indicators of a finance lease. Provide brief explanations.

  Net ird and the ird reported on the return for the period

Deductible executor's fee. Net IRD and the IRD reported on the return for the period ended June 30, 2011.

  Prepare abc corporations statement of cash flows

Prepare ABC Corporation's statement of cash flows using the indirect method and include an accompanying schedule of noncash investing and financing activities

  What is the optimal length of a contract

What is the optimal length of a contract , L, which Weyer could make with steuben? Derive and explain your answer.

  Attributable to a temporary book–tax difference

A balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2013, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allo..

  L below are costs found in various organizations1

listed below are costs found in various organizations.1. property taxes factory. 2. boxes used for packaging

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd