The Portion of a Shareholder-Employee's Salary That Is Classified as Unreasonable

question 105

True/False

The portion of a shareholder-employee's salary that is classified as unreasonable has no effect on the amount of a shareholder-employee's gross income, but results in an increase in the taxable income of the corporation.

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Definitions:

Uniqueness

The quality of being the only one of its kind; in branding, it refers to features or attributes that set a brand apart from its competitors.

Brand Asset

Any resource associated with a brand that adds to its value, such as its name, logo, reputation, or intellectual property.

Invest

The act of allocating resources, usually financial capital, in the expectation of generating an income or profit.