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s2008m [1.1K]
3 years ago
11

Matt, the sole shareholder of Pastel Corporation (a C corporation), has the corporation pay him a salary of $600,000 in the curr

ent year. The Tax Court has held that $200,000 represents unreasonable compensation. Matt must report a salary of $400,000 and a dividend of $200,000 on his individual tax return.True / False.
Business
1 answer:
12345 [234]3 years ago
7 0

Answer:

Explanation:

True  

When the payment of salary is not considered reasonable, the excess will be treated as dividend. Hence, Matt is a sole shareholder and is taxable for the dividends as well as salary.

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When a tactics is harmful causing various harms to human health or posing threat it should not be supported.

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They are some actions that are taken a particular time to achieve a particular goal and objective which is short time.

This actions are harmful and the results are usually detrimental.

Therefore, U.S. government should not support U.S. tobacco company interest abroad if they are using harmful tactics.

Learn more on harmful tactics

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