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Mr. and Mrs. Williams are the sole shareholders of Lessing, Inc., an S corporation. Last year, Lessing employed the Williams' son and paid him a $50,000 salary. During a recent IRS audit, the revenue agent discovered that the son rarely shows up for work and spends most of his time playing golf. Which of the following statements is true? Multiple Choice The IRS can disallow Lessing's $50,000 deduction for the son's salary. Such treatment will increase the amount of Income recognized by Mr. and Mrs. Williams. The IRS can treat the $50,000 payment as a constructive dividend to the son. The IRS can disallow Lessing's $50,000 deduction for the son's salary. Such treatment has no effect on Mr. and Mrs. Williams.. The discovery has no tax consequences to Mr. and Mrs. Williams or their son. Mr. Wang's corporate employer transferred him from its Seattle office to its San Jose office. Mr. Wang incurred $18,000 of moving expenses to relocate his household to San Jose. Which of the following statements is true? Multiple Choice If his employer paid him an $18,000 moving allowance, Mr. Wang must include $18,000 in gross income. If his employer paid him a $12,000 moving allowance, Mr. Wang is allowed a $6,000 itemized deduction for moving expenses. If his employer paid him a $12,000 moving allowance, Mr. Wang is allowed a $6,000 above-the line deduction. Regardless of the amount of any moving allowance paid by his employer, Mr. Wang is allowed an $18,000 itemized deduction for unreimbursed moving expenses