Z is a ten-percent (10%) shareholder of H, Inc. H, Inc. has distributable net income of $100,000 this year and no accumulated earnings and profits. Z was paid $15,000 by the company for his expertise as a pilot, but he did not fly this year. How is the IRS likely to view the $15,000?

a. $15,000 salary to Z.

b. $15,000 dividend.

c. $10,000 dividend, $5,000 salary, return of capital, or capital gain.

d. $7,500 salary, $7,500 dividend.