Wish, Inc., a 501(c)(3) organization, pays unreasonable compensation to Molly, the treasurer of Wish. Mollys compensation

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Wish, Inc., a § 501(c)(3) organization, pays unreasonable compensation to Molly, the treasurer of Wish. Molly’s compensation is $600,000. Assume that reasonable compensation would be $500,000.

a. Determine any adverse tax consequences for Wish, Inc.

b. Determine any adverse tax consequences for Molly.

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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

ISBN: 9781305399884

39th Edition

Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

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Question Posted: Sep 09, 2015 07:05 AM

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Wish, Inc., a 501(c)(3) organization, pays unreasonable compensation to Molly, the treasurer of Wish. Mollys compensation

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a Wish has engaged in an excess benefit transaction that is subject to excise taxes on the amount of ...View the full answer

South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

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