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Training detail: Curriculum

Test $-$ S Corporations II $(2023)$: Test

Section I

Question $1$ of $15.$

Which of these shareholder$-$employees seems to be receiving reasonable compensation from the $S$ corporation?

Ashlynn is the only shareholder$-$employee of an S corporation that makes $$213,179$ a year. She paid herself a salary of $$56,321,$ which is comparable to other employees in her field of work.

Boniface is one of six shareholder$-$employees of an $S$ corporation with a fireworks superstore, which makes $$348,792$ a year. He pays himself a salary of $$20,000$ for his full$-$time position running the company on a daily basis.

Quintin is an optometrist who owns an S corporation, which makes $$553,468$ a year, with two other shareholders. He pays himself a salary of $$53,467.$ Comparable optometrist salaries range from $$110,000$ to $$150,000.$

Ravyn is a shareholder$-$employee of an $S$ corporation that makes $$64,789$ a year. She pays herself a salary of $$1,000.$