Reasonableness of Compensation (LO. 5) Sonya owns 58 percent and her sister Karen owns 42 percent of the Tanglewood Group. They inherited their ownership from their mother, who died in 2018. Sonya is the president and chief financial officer of the corporation and receives a salary of $135,600, which is reasonable given her duties and responsibilities. Karen, who is vice president is paid a salary of $64,600. She is not actively involved in the business and views her ownership as an investment Determine how the payments to Sonya and Karen are treated for tax purposes if a. Tanglewood is a corporation. The salary paid to Sonya corporation should be deductible. The $ 64,600 paid to Karen is not a deductible expense of the b. Tanglewood is an S corporation. The salary paid to Sonya should be deductible. The by64,600 x. sonva's income Increases 64,600 paid to Karen V is not a deductible expense of the corporation. Karen's Income from the S corporation Increases by 64,600 x Check My Wrk For a closely held business, the substance-over-form doctrine dealing with the issues of lack of business purpose and unreasonableness of salary is the usual focus of IRS scrutiny Chock My Work Next Save and Exit Submit t for Grading 211 AM