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.

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Definitions:

Urine

A liquid waste product filtered from the blood by the kidneys and expelled from the body.

Study Of

A phrase used to indicate the examination or analysis of a particular subject, field, or phenomenon.

Bronchiole

A small airway in the respiratory tract that leads from the bronchus to the alveolar ducts.

Small

Of a size that is less than normal or usual.