Aaron, a Shareholder-Employee of Pigeon, Inc

question 57

True/False

Aaron, a shareholder-employee of Pigeon, Inc., receives a $300,000 salary.The IRS classifies $100,000 of this amount as unreasonable compensation.The effect of this reclassification is to decrease Aaron's gross income by
$100,000 and increase Pigeon's gross income by $100,000.

---

Definitions:

Mediators

Neutral third parties who assist in negotiations and conflict resolution by facilitating dialogue between disputing parties.

Negotiations

The art or act of discussing points of difference to reach an agreement, often seen in contexts like business, labor, and diplomacy.

Fact-finder

An impartial party, often appointed by a court or involved in a dispute resolution process, tasked with investigating disputed facts and reporting findings.

Dispute

A disagreement or argument, often in a legal context, between parties that can involve debates over contracts, policies, or rights.