Carole owns 75% of Pet Foods, Inc. As CEO, Carole must travel extensively and does so on the company jet. In addition, she also uses the jet to take several personal vacations. Carole reports the value of the personal use of the jet, $40,000, as additional compensation. Which of the following is true in terms of the corporation?
A) The corporation includes $40,000 as miscellaneous income.
B) The corporation takes a deduction of $40,000 for dividend expense.
C) The $40,000 has no impact on the corporation's income tax.
D) The corporation takes a deduction of $40,000 for compensation expense.
Correct Answer:
Verified
Q7: Generally,expenses incurred in an investment activity other
Q10: A deduction will be allowed for an
Q14: Fees paid to prepare a taxpayer's Schedule
Q28: In order for an expense to be
Q30: A sole proprietor paid legal fees in
Q382: FIFO Corporation, a public- traded corporation, pays
Q384: During the current year, Martin purchases undeveloped
Q386: Various criteria will disqualify the deduction of
Q388: Mark and his brother, Rick, each own
Q389: Assume Congress wishes to encourage healthy eating
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents