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One of Your Friends, Who Is the Sole Shareholder of a Private

Question 20

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One of your friends, who is the sole shareholder of a private corporation, has decided that it would be a good idea to have his company pay for a swimming pool at his personal residence. He has concluded that this would be better than paying himself sufficient salary to construct the pool with his own funds. Do you agree? Explain your conclusion.

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This would not be a good idea. To begin,...

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