Aaron, a Shareholder-Employee of Pigeon, Inc

question 57

True/False

Aaron, a shareholder-employee of Pigeon, Inc., receives a $300,000 salary.The IRS classifies $100,000 of this amount as unreasonable compensation.The effect of this reclassification is to decrease Aaron's gross income by
$100,000 and increase Pigeon's gross income by $100,000.

---

Definitions:

Elevated Mood

A state of enhanced emotional well-being or happiness, often more than is typical for an individual.

Euphoria

An intense state of happiness, confidence, or well-being, sometimes beyond what is considered normal.

Bipolar Disorder

A mental disorder marked by alternating periods of elation and depression.

Onset

The beginning or start of something, often referring to the initial stage of a disease or condition.