Solution-Discuss net income for tax purposes

Discuss net income for tax purposes

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Reference no: EM131789991

Quality Homes Ltd. (Quality) has a December 31, 2015 year end. The controller has calculated the Company's 2015 income as $50,000. However, in arriving at this amount, the controller deducted $30,000 of salary to an employee who is the sole shareholder of the Company and $5,000 of salary to an arm's length employee. Both of these amounts were paid on July 30, 2016. Which one of the following represents Quality's 2015 Net Income For Tax Purposes?

Reference no: EM131789991

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Discuss net income for tax purposes

Reference no: EM131789991

Reference no: EM131789991

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