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Cal, a shareholder-employee of Dog, Inc., receives a $300,000 salary. The IRS classifies $80,000 of this amount as unreasonable compensation. The effect of this reclassification
Cal, a shareholder-employee of Dog, Inc., receives a $300,000 salary. The IRS classifies $80,000 of this amount as unreasonable compensation. The effect of this reclassification is no change to Cals gross income and decrease Dogs gross income by $80,000.
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