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To avoid double taxation on corporate income, shareholders in closely held C-corporations often pay themselves large salaries. a. Briefly discuss how the reasonable compensation issue

To avoid double taxation on corporate income, shareholders in closely held C-corporations often pay themselves large salaries. a. Briefly discuss how the reasonable compensation issue applies to S-corporations. b. Briefly explain the double taxation problem and how paying large salaries to owners avoids it. c. Briefly discuss the IRS's position on reasonable compensation for owner-employees of closely held C-corporations

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