Patrick, an Attorney, Is the Sole Shareholder of Gander Corporation

question 42

Multiple Choice

Patrick, an attorney, is the sole shareholder of Gander Corporation, a C corporation. Gander is a personal service corporation with a fiscal year ending November 30 (pursuant to a § 444 election) . The corporation paid Patrick a salary of $180,000 during its fiscal year ending November 30, 2015. How much salary must Gander pay Patrick during the period December 1 through December 31, 2015, to permit the corporation to continue to use its fiscal year without negative tax effects?

• A) $0
• B) $30,000
• C) $165,000
• D) $180,000
• E) None of the above

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Definitions:

Normal Distribution

A distribution of probability centered around its mean, highlighting that occurrences close to the mean happen more often than those far from it.

Semi-strong Form Efficiency

A form of market efficiency that posits all publicly available information is fully reflected in stock prices, including historical financial data and current news.

Stock Price

Stock Price is the current price at which a share of stock is trading on the market, influenced by various factors including company performance, investor sentiment, and market conditions.

Trading Day

A day on which stock markets are open for trading.