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Sonya owns 61 percent and her sister Karen owns 39 percent of the Tanglewood Group. They inherited their ownership from their mother, who died

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Sonya owns 61 percent and her sister Karen owns 39 percent of the Tanglewood Group. They inherited their ownership from their mother, who died in 2019. Sonya is the president and chief financial officer of the corporation and receives a salary of $139,200, which is reasonable given her duties and responsibilities. Karen, who is vice president, is paid a salary of $59,400. 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 it: a. Tanglewood is a corporation. The salary paid to Sonya should be deductible. The $59,400 paid to Karen is not a deductible expense of the corporation. should be deductible. The 59,400 by s b. Tanglewood is an S corporation. The salary paid to Sonya deductible expense of the corporation. Karen's income from the S corporation increases x. increases by s[ paid to Karen is not a x. Sonya's income

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