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Sonya owns 66 percent and her sister Karen owns 34 percent of the Tanglewood Group. They inherited their ownership from their mother, who died in

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Sonya owns 66 percent and her sister Karen owns 34 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 $131,200, which is reasonable given her duties and responsibilities. Karen, who is vice president, is paid a salary of $67,600. 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: should be deductible. The $ paid to Karen is not a deductible expense of a. Tanglewood is a corporation. The salary paid to Sonya the corporation. is not a deductible expense of b. Tanglewood is an S corporation. The salary paid to Sonya the corporation. Karen's income from the S corporation increases should be deductible. The $ paid to Karen by $ Sonya's income increases by $

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