Distributions from a Corporation (see first example box on page 423 of the study guide): Mary Long is the sole shareholder of ABC Corporation. This year, ABC paid Mary Long a salary of $300,000 when a reasonable amount of compensation for Mary Long's services would have been $100,000. How much of the $300,000 is deductible by ABC Corporation? a. $300,000 Ob. $100,000 C. $0 Od. $200,000
Distributions from a Corporation (see first example box on page 423 of the study guide): Mary Long is the sole shareholder of ABC Corporation. This year, ABC paid Mary Long a salary of $300,000 when a reasonable amount of compensation for Mary Long's services would have been $100,000. How much of the $300,000 is deductible by ABC Corporation? a. $300,000 Ob. $100,000 C. $0 Od. $200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Distributions from a Corporation (see first example box on page 423 of the study guide): Mary Long is the sole shareholder of
ABC Corporation. This year, ABC paid Mary Long a salary of $300,000 when a reasonable amount of compensation for Mary
Long's services would have been $100,000. How much of the $300,000 is deductible by ABC Corporation?
a. $300,000
b. $100,000
C. $0
d. $200,000
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