The three shareholders of an S corporation have binding compensation contracts with the corporation, with one of

Question:

The three shareholders of an S corporation have binding compensation contracts with the corporation, with one of the shareholders having excessive payments (resulting in a constructive dividend). Would this arrangement mean that the corporation has two classes of stock? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

South Western Federal Taxation 2015

ISBN: 9781305310810

38th Edition

Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young

Question Posted: