Jason,an Architect,is the Sole Shareholder of Purple Corporation,a Personal Service

question 63

Multiple Choice

Jason,an architect,is the sole shareholder of Purple Corporation,a personal service corporation.The corporation paid Jason a salary of $225,000 during its fiscal year ending October 31,2012.How much salary must Purple pay Jason during the period November 1 through December 31,2012,to permit the corporation to continue to use its fiscal year without negative tax effects?

• A)$18,750.
• B)$37,500.
• C)$187,500.
• D)$225,000.
• E)None of the above.

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Definitions:

Mathematical Ability

The capability to perform mathematical calculations, understand theories, and solve numerical problems.

Precocious

Characterized by early development or maturity, especially in mental aptitude or emotional capacity.

Large Vocabulary

The possession of a broad and extensive collection of words and terms within an individual's language repertoire.

Speaking Early

The development milestone where a child begins to use words and form simple sentences at an earlier age than typical developmental timelines.