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:

Decision Participation

The process in which individuals or groups contribute to making decisions that affect them.

Situational Aspects

Factors or conditions, present in a situation, that can influence outcomes or the behavior of individuals.

Empowering Leadership

A leadership approach focused on delegating power to employees, enabling them to take initiative, make decisions, and solve problems autonomously.

Labor Costs

The total sum of all wages, benefits, and taxes that an employer incurs in compensation for the work performed by employees.