In 2007,a medical doctor who incorporated his practice elected a fiscal year ending September 30th.During the fiscal year ended September 30,2017,he received a salary of $190,000.During the period from October 1,2017 to December 31,2017,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 30,2018,is limited to $240,000.

Question

Quizplus · Accepted Answer

The deduction for the corporation's salary is limited to $240,000 for the fiscal year ending September 30,2018, which includes the salary paid to the doctor from October 1,2017 to September 30,2018. Therefore, the corporation can deduct the $240,000 paid to the doctor during the 9 months following October 1, 2017, but cannot deduct the $60,000 paid during the period from October 1, 2017 to December 31, 2017, as it falls outside the scope of the fiscal year ending September 30, 2018. The doctor's salary received during the fiscal year ending September 30,2017 is not relevant for determining the corporation's deduction for the following fiscal year.

In 2007,a Medical Doctor Who Incorporated His Practice Elected a Fiscal