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:

Dysfunctional Behavior

Refers to any behavior at work that is counterproductive. These behaviors may include theft and sabotage, as well as sexual and racial harassment.

Financial Costs

The total amount of money that is spent by a business or organization on activities including operations, projects, and investments.

Clinical Depression

A medical condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Institutional Program

A set of organized activities and policies designed to meet the goals of institutions like schools or prisons.