Issue Recognition Problems Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.
This year, TT Corporation agreed to defer $100,000 compensation owed to Ms. B, the director of research. TT funded its obligation by transferring $100,000 cash to a trust administered by a local bank. TT can’t reclaim these funds. However, the trust fund is subject to the claims of TT’s general creditors. Ms. B has no right to the funds unless she works for TT until age 59, the mandatory retirement age.