Patrick,an Attorney,is the Sole Shareholder of Gander Corporation

question 71

Multiple Choice

Patrick,an attorney,is the sole shareholder of Gander Corporation.Gander is a personal service corporation with a fiscal year ending September 30.The corporation paid Patrick a salary of $294,000 during its fiscal year ending September 30,2010.How much salary must Gander pay Patrick during the period October 1 through December 31,2010,to permit the corporation to continue to use its fiscal year without negative tax effects?

• A)$0.
• B)$73,500.
• C)$220,500.
• D)$294,000.
• E)None of the above.

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Definitions:

Asexual Reproduction

A mode of reproduction where offspring are produced by a single parent without the involvement of gamete fusion.

Corms

Short, vertical, swollen underground plant stems that function as storage organs to survive winter or dry seasons.

Rhizomes

Underground plant stems capable of producing the shoot and root systems of a new plant, commonly seen in ginger and bamboo.

Plantlets

Small, young plants that emerge from the parent plant, capable of growing independently, often used in asexual reproduction.