TIME LEFT: 01:27:59 A closely held C Corporation pays the controlling shareholder an annual salary of $1,000,000. Based on the size of the corporation, its operations, the shareholder's duties, and a salary comparison with other firms, the IRS contends the salary should be no higher than $450,000 How much will the company be allowed to deduct as a business expense assuming the IRS ruling stands, but the company has already paid out the full $1,000,000 to the employee and cannot reasonably expect to recoup it? $1,000,000 since the company has already paid out the full amount $550,000 since this amount will be classified as a dividend $0 since the business misclassified the expense $450,000 since only the allowable salary is deductible Question navigation