Christian, the President and Sole Shareholder of Venture Corporation, Is

question 80

Essay

Christian, the president and sole shareholder of Venture Corporation, is paid an annual salary of $150,000. Christian would like to draw additional funds from the corporation but is concerned that increased salary might cause the IRS to contend his salary is unreasonable. Further, Christian does not want the corporation to pay any dividends. He would like to contribute $40,000 to his alma mater to establish scholarships for needy students. If Christian makes a pledge to the university to provide $40,000 for scholarships, would there be a problem if Venture Corporation paid the pledge on his behalf? Explain.

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Definitions:

Intractable Epilepsy

A form of epilepsy that is resistant to treatment, where patients do not achieve seizure control through medication.

Primary Motor Area

A part of the frontal lobe in the brain responsible for the execution of voluntary movements by sending signals to skeletal muscles.

Neuron

A specialized cell transmitting nerve impulses; the basic building block of the nervous system.

Lateralized

Refers to the tendency for some neural functions or cognitive processes to be more dominant in one hemisphere of the brain than the other.