Saleh, an Accountant, Is the Sole Shareholder of Turquoise Corporation

question 85

Multiple Choice

Saleh, an accountant, is the sole shareholder of Turquoise Corporation, a C corporation. Turquoise is a personal service corporation with a fiscal year ending September 30 (pursuant to a § 444 election) . The corporation paid Saleh a salary of $330,000 during its fiscal year ending September 30, 2018. How much salary must Turquoise pay Saleh during the period October 1 through December 31, 2018, if the corporation is to continue to use its fiscal year without negative tax effects?

• A) $0
• B) $27,500
• C) $82,500
• D) $247,500
• E) None of the above

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