Purple Corporation,a Personal Service Corporation (PSC),adopted a Fiscal Year Ending

Purple Corporation,a personal service corporation (PSC) ,adopted a fiscal year ending September 30th.The sole shareholder of the corporation is a calendar year taxpayer.During the fiscal year ending September 30,2010,the shareholder-employee received $120,000 salary.The corporation paid the shareholder-employee a salary of $15,000 during the period beginning October 1,2010 through December 31,2010.

A) The corporation salary expense for the fiscal year ending September 30,2011 is limited to $120,000.
B) The corporation salary expense for the fiscal year ending September 30,2011 is limited to $135,000.
C) The corporation salary expense for the fiscal year ending September 30,2011 is limited to $60,000.
D) The corporation must switch to a calendar year.
E) None of the above.