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
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Aaron, a shareholder-employee of Pigeon, Inc., receives a $300,000 salary. The IRS classifies $100,000 of this amount as unreasonable ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is a current trend in information technology careers? A. The differences between the pathways is becoming more rigid as different skills are needed. B. Employers expect new hires to be knowledgeable in many pathway careers. C.
Answers (1)
Tony signed a contract agreeing to purchase a used, high-powered boat for $10,000. Prior to signing the contract, the sales representative explained that the boat motor was guaranteed for six months for all labor and parts.
Answers (1)
a credit entry a. is always an increase in an account. b. is always a decrease in an account. c. is recorded on the left side of a T-account. d. increases asset and expense accounts, and decreases liability, owner's capital, and revenue accounts. e.
Answers (1)
During the past year, a company had cash flow to creditors, an operating cash flow, and net capital spending of $30,591, $69,573, and $30,460, respectively.
Answers (1)
Coca-Cola, Inc. and PepsiCo, Inc. have only one distributor each in the Phoenix area. The Phoenix market is an intensely competitive soft drink market with prices being among the lowest in the nation.
Answers (1)
New Questions in Business
Honda Motor Company is considering offering a $ 1 comma 800 rebate on its minivan, lowering the vehicle's price from $ 29 comma 400 to $ 27 comma 600.
Answers (1)
State the generally accepted accounting principle applicable to balance sheet valuation of each of the following assets. (a) Trade accounts receivable. (b) Land. (c) Inventories. (d) Trading securities (common stock of other companies).
Answers (1)
What does it mean to be concise in business writing? A. to use facts that readers can easily verify B. to use language that impresses readers C. to use fewer words to clearly convey ideas D. to use reliable sources to present information
Answers (1)
Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2015. On that date, Paar's equipment (10-year remaining life) has a book value of $420,000 but a fair value of $520,000.
Answers (1)
On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale.
Answers (1)