Juan an attorney is the sole shareholder of Carmine Corporation
Juan, an attorney, is the sole shareholder of Carmine Corporation, a C corporation and professional association. The corporation paid Juan a salary of $336,000 during its fiscal year ending September 30, 2015.
a. How much salary must Carmine pay Juan during the period October 1 through December 31, 2015, to permit the corporation to continue to use its fiscal year without negative tax effects?
b. Carmine Corporation had taxable income of $95,000 for the year ending September 30, 2015. Compute the corporation’s income tax liability for the year.
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