please help me with this tax problem
Question # 00746727
Posted By:
Updated on: 12/16/2019 06:50 PM Due on: 12/16/2019
PQR Corporation, a "C" corporation, has net income of $640,000 during the year ($1,200,000 revenue - $560,000 operating expenses)before paying salaries to its two equal shareholders, Dean and Mary (work in similar jobs as employees of the corporation) PQR pays each shareholder-employee a salary of $320,000. On audit, an IRS agent determines that $100000 of the amount paid to each of the shareholders is unreasonable. What tax effects will this have on Dean, Mary, and the corporation?
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Rating:
5/