In 2004, a medical doctor who incorporated his practice elected a fiscal year ending September 30th.During the fiscal year ended September 30, 2012, he received a salary of $180,000.During the period from October 1, 2012 to December 31, 2012, the corporation paid the doctor a total salary of $50,000, and paid him $200,000 of salary in the following 9 months.The corporation's salary deduction for the fiscal year ending September 30, 2013, is limited to $200,000.

Question

Quizplus · Accepted Answer

The corporation's salary deduction for the fiscal year ending September 30, 2013, is limited to $200,000, which is the total amount paid to the doctor from October 1, 2012 to June 30, 2013. The salary received during the fiscal year ended September 30, 2012, is not relevant to the deduction limit for the following fiscal year. Therefore, the statement is true.

In 2004, a Medical Doctor Who Incorporated His Practice Elected