Wilma Is CEO of and Owns 100 Percent of WT

Wilma is CEO of and owns 100 percent of WT Enterprises,a cash-basis,calendar-year corporation.The company has always been profitable but over the last five years Wilma's salary has increased from over $400,000 per year to over $1,000,000 and it has failed to pay dividends.Which of the following will not occur if the IRS determines that $500,000 of her salary is unreasonable?

A) Wilma will pay an additional tax on the $500,000 recharacterized as dividend.
B) Wilma will be eligible for a refund of Medicare taxes.
C) WT will lose a $500,000 deduction for the recharacterized dividend.
D) WT will be eligible for a refund of a portion of FICA taxes paid.