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Zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be satisfied. For the year ending September 30, 2013, the corporation paid Zorn a salary of $180,000 and during the period January through September 2013, the corporation paid him a salary of $150,000.
a. how much salary should Zorn receive during the period October 1 through December 31, 2013?
b. Assume that Zorn received only $24,000 salary during the period October 1 through December 31, 2013. What would be the consequences to Zorn, Inc.?
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