Mr and Mrs

question 63

Multiple Choice

Mr. and Mrs. Williams are the sole shareholders of Lessing, Inc., a regular corporation. Last year, Lessing employed the Williams' son and paid him a $50,000 salary. During a recent IRS audit, the revenue agent discovered that the son rarely shows up for work and spends most of his time playing golf. Which of the following statements is true?

• A) The IRS can treat the $50,000 payment as a constructive dividend to the son.
• B) The IRS can treat the $50,000 payment as a constructive dividend to Mr. and Mrs. Williams.
• C) The IRS can disallow Lessing's $50,000 deduction for the son's salary.
• D) Both B. and C. are true.

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Definitions:

Information Richness

The amount and depth of information that is transmitted in a communication medium or message.

Gender Differences

The distinctions in characteristics, roles, behaviors, and biological attributes typically associated with males and females.

Communication Barrier

Any obstacle that impedes the exchange of information between individuals or groups, hindering effective communication.

Cultural Awareness

The recognition and understanding of the differences and similarities between cultures, enhancing effective communication and interaction in diverse environments.