Which of the following would not necessarily be considered a related party transaction?
A) Payment of a bonus to the president.
B) Purchases from another corporation that is controlled by the corporation's chief stockholder.
C) Loan from the corporation to a major stockholder.
D) Sale of land to the corporation by the spouse of a director.

Question

Quizplus · Accepted Answer

Payment of a bonus to the president is a normal business transaction and does not necessarily involve a related party transaction unless the terms are not at arm's length.

Which of the Following Would Not Necessarily Be Considered a Related