Jake,the sole shareholder of Peach Corporation,a C corporation,has the corporation pay him $100,000.For tax purposes,Peach would prefer to have the payment treated as salary instead of dividend.

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Peach Corporation would prefer the payment to be treated as salary because salary payments are deductible as a business expense, while dividend payments are not. Additionally, salary payments are subject to payroll taxes, while dividend payments are not. Therefore, Peach Corporation would have a lower tax liability if the payment was treated as salary instead of dividend.

Jake,the Sole Shareholder of Peach Corporation,a C Corporation,has the Corporation