Zorn conducted his professional practice through Zorn, Inc. The corporation uses a fiscal year ending September 30

Question:

Zorn conducted his professional practice through Zorn, Inc. The uses a fiscal year ending September 30 even though the business purpose test for a fiscal year cannot be satisfied. For the year ending September 30, 2016, the paid Zorn a salary of $180,000, and during the period January through September 2016, the paid him a salary of $150,000.
a. How much salary should Zorn receive during the period October 1 through December 31, 2016?
b. Assume that Zorn received only $24,000 salary during the period October 1 through December 31, 2016. What would be the consequences to Zorn, Inc.?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...