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Management Studies

Q. Bonnie and Clyde each own one-third of a fast-food restaurant and their 13 year-old daughters own the other shares. Both parents work full-time in the restaurant but the daughter works infrequently. Neither Bonnie nor Clyde receives a salary during the year, when the ordinary income of the S corporation is $180,000. An IRS agent estimates the reasonable salaries for Bonnie, Clyde and the daughter are $30,000, $35,000 and $100,000 respectively. Illustrate what adjustments would you expect the IRS to impose upon these taxpayers?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9352450

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