1. For tax purposes, how is the compensation paid to an S corporation shareholder similar to compensation paid to an owner of an entity taxed as a partnership? How is it different?

2. Why might it be a good tax planning strategy for an S corporation with one shareholder to pay a salary to the shareholder on the low end of what the services are potentially worth?

3. Is business income allocated from a flow-through entity to its owner's self-employment income? Explain.

4. Briefly describe the process of computing a corporations minimum tax credit carryover.