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Holli is the President and sole shareholder of Angel, Inc., a regular corporation. In 2017, the corporation reported taxable income of $435,000 after deducting Holli's
Holli is the President and sole shareholder of Angel, Inc., a regular corporation. In 2017, the corporation reported taxable income of $435,000 after deducting Holli's $800,000 salary. In a 2020 audit, the IRS disallowed $550,000 of the 2017 salary as unreasonable compensation, the corporation's 2017 regular income tax will change by a: (assuming a 2017 tax rate of 34% to the corporation). Group of answer choices $187,000 increase $175,000 increase $175,000 decrease $187,000 decrease
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