Emma, the sole shareholder of Quail Corporation (a C corporation), has the corporation pay her a salary

Question:

Emma, the sole shareholder of Quail (a C has the pay her a salary of $300,000 in 2008. The Tax Court has held that $80,000 represents unreasonable compensation. Assuming Emma is in the 35% bracket in 2011, the Tax Court’s holding will reduce the total tax she pays in 2011 True?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...