Amos, a Shareholder-Employee of Pigeon, Inc

question 41

True/False

Amos, a shareholder-employee of Pigeon, Inc., receives a $400,000 salary.The IRS classifies $125,000 of this amount as unreasonable compensation.The effect of this reclassification is to decrease Amos' gross income by $125,000 and increase Pigeon's gross income by $125,000.

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Definitions:

Sagittal Plane

An anatomical plane that divides the body into right and left parts.

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system.

Ribs

Long, curved bones which form the rib cage, providing protection to the thoracic organs and supporting the upper body.

Patellar Region

Refers to the area of the body associated with the knee cap.