Amanda is the president and 60% owner of ANR, a closely held corporation. During the year, she is paid a salary of $650,000. Her salary is 40% higher than that for executives of comparably sized companies in the industry. ANR has experienced 4 straight years of increased sales growth, at 3% per year, while other companies in the industry have experienced decreasing or level sales. Discuss what factors are used to determine whether Amanda's salary represents reasonable compensation.

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The Answer of Amanda is the president and 60% owner of ANR, a closely held corporation. During the year, she is paid a salary of $650,000. Her salary is 40% higher than that for executives of comparably sized companies in the industry. ANR has experienced 4 straight years of increased sales growth, at 3% per year, while other companies in the industry have experienced decreasing or level sales. Discuss what factors are used to determine whether Amanda's salary represents reasonable compensation.

Amanda Is the President and 60% Owner of ANR, a Closely