Chad Is the President and Sole Shareholder of Greenfield, Inc

question 41

Multiple Choice

Chad is the president and sole shareholder of Greenfield, Inc., a regular corporation. The corporation reported taxable income of $575,000 after deducting his $900,000 salary. If the IRS disallowed $550,000 as unreasonable compensation, Chad's taxable income will:

• A) Increase by $550,000
• B) Decrease by $550,000
• C) Increase by $900,000
• D) Stay the same

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Definitions:

Gametes

Reproductive cells (sperm in males and ova in females) that unite during sexual reproduction to form a new organism.

Polygenic

Referring to a trait or condition that is influenced by multiple genes, often resulting in complex inheritance patterns.

Susceptibility

The likelihood or tendency to be affected by a particular condition or disease.

Temperament

The inherent part of an individual's personality, often evident from childhood, including aspects such as mood, disposition, and adaptability.