Saleh, an Accountant, Is the Sole Shareholder of Turquoise Corporation

question 90

Multiple Choice

Saleh, an accountant, is the sole shareholder of Turquoise Corporation, a C corporation. Turquoise is a personal service corporation with a fiscal year ending September 30 (pursuant to a § 444 election) . The corporation paid Saleh a salary of $330,000 during its fiscal year ending September 30, 2015. How much salary must Turquoise pay Saleh during the period October 1 through December 31, 2015, if the corporation is to continue to use its fiscal year without negative tax effects?

• A) $0
• B) $27,500
• C) $82,500
• D) $247,500
• E) None of the above

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Definitions:

Unjust Favoritism

A situation where preferential treatment is given without fair standards or merit, often leading to dissatisfaction and conflict within groups.

Group Harmony

The state of agreement and cooperation among members of a group, achieved by minimizing conflicts and emphasizing common interests.

Individualism

A theoretical approach that prioritizes individual autonomy over the power of groups or governmental authority.

Collectivism

A cultural or societal approach that prioritizes the group's needs and goals over individual desires or ambitions.