In 2006, a medical doctor who incorporated his practice elected a fiscal year ending September 30th. During the fiscal year ended September 30, 2016, he received a salary of $190,000. During the period from October 1, 2016 to December 31, 2016, the corporation paid the doctor a total salary of $60,000, and paid him $240,000 of salary in the following 9 months. The corporation's salary deduction for the fiscal year ending September 30, 2017, is limited to $240,000.

Question

Quizplus · Accepted Answer

The corporation's salary deduction for the fiscal year ending September 30, 2017, is limited to $240,000, which includes the $60,000 paid from October 1, 2016, to December 31, 2016, and the $240,000 paid in the following 9 months. Therefore, the statement is true.

In 2006, a Medical Doctor Who Incorporated His Practice Elected