Nicole and Braxton are each 50 percent shareholders of NB Corporation. Nicole is also an employee of

Question:

Nicole and Braxton are each 50 percent shareholders of NB Nicole is also an employee of the NB is a calendar-year taxpayer and uses the accrual method of accounting. The pays its employees monthly on the first day of the month after the salary is earned by the employees. What issues must NB consider with respect to the deductibility of the wages it pays to Nicole if Nicole is Braxton's sister? What issues arise if Nicole and Braxton are unrelated?
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...