Question
Pink Corporation has several employees. Their names and salaries are listed below: Judy $470,000 Holly (Judy's daughter) 100,000 Terry (Judy's son) 100,000 Amman (an unrelated
Pink Corporation has several employees. Their names and salaries are listed below:
Judy $470,000
Holly (Judy's daughter) 100,000
Terry (Judy's son) 100,000
Amman (an unrelated third party) 320,000
Holly and Terry are the only shareholders of Pink. Judy and Amman share equally in the management of the company's operations. Holly and Terry are both full-time college students at a university 200 miles away. Pink has substantial E & P and never has distributed a dividend. What are any income tax issues related to Pink's salary arrangement?
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Bookkeeping And Accounting For Beginners
Authors: Warren Piper Ruell
1st Edition
1654626090, 978-1654626099
