Choose the best multiple choice answers and explain why you chose the answer. MUST provide 2-3 sentence
Question:
Choose the best multiple choice answers and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all work. All sources must be noted.
A. Harry, a shareholder-employee of Fox, Inc., receives a $350,000 salary. The IRS classifies $100,000 of this amount as unreasonable compensation. The effect of this reclassification is to increase Fox’s gross income by $100,000. Harry’s income remains the same
B. A basketball team that pays a player an annual salary of $10 million can deduct the entire $10 million as salary expense. If the same amount is paid to the CEO of Microsoft, only $5 million is deductible.
C. Jill sells land to her adult son, Jim, for its $50,000 appraised value. Her adjusted basis for the land is $60,000. Jill’s recognized loss is $0 and James adjusted basis for the land is $60,000.
D. If a business debt previously deducted as partially worthless becomes totally worthless this year, only the amount not previously deducted can be deducted this year.
Organizational Behavior Improving Performance and Commitment in the Workplace
ISBN: 978-1259545092
5th edition
Authors: Jason Colquitt, Jeffery LePine, Michael Wesson