Carole Owns 75% of Pet Foods,Inc

question 27

Multiple Choice

Carole owns 75% of Pet Foods,Inc.As CEO,Carole must travel extensively and does so on the company jet.In addition,she also uses the jet to take several personal vacations.Carole reports the value of the personal use of the jet,$140,000,as additional compensation.Which of the following is true in terms of the corporation?

• A)The corporation includes $140,000 as miscellaneous income.
• B)The $140,000 has no impact on the corporation's income tax.
• C)The corporation takes a deduction of $140,000 for compensation expense.
• D)The corporation takes a deduction of $140,000 for dividend expense.

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Definitions:

Technology Component

An element or part of a larger technological system that performs a specific function.

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A systematic, formal approach to the analysis of performance and systematic efforts to improve it.

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The achievement of the key objectives and goals set by an organization, often measured by financial performance, market share, and innovation.

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