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Thomas, the sole shareholder of Crayon Corporation (a C corporation), has the corporation pay him a salary of $500,000 in the current year. The Tax

Thomas, the sole shareholder of Crayon Corporation (a C corporation), has the corporation pay him a salary of $500,000 in the current year. The Tax Court has held that $150,000 represents unreasonable compensation. Don must report a salary of $350,000 and a dividend of $150,000 on his individual tax return.

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