Carole owns 75 of pet foods inc as ceo carole must travel, Ask an Expert

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Carole owns 75% of Pet Foods, Inc. As CEO, Carole must travel extensively and does so on the company jet. In addition, she also uses the jet to take several personal vacations. Carole reports the value of the personal use of the jet, $140,000, as additional compensation. Which of the following is true in terms of the corporation?

a. The corporation includes $140,000 as miscellaneous income

b. The $140,000 has no impact on the corporation's income tax

c. The corporation takes a deduction of $140,000 for compensation expense

d. The corporation takes a deduction of $140,000 for dividend expense

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92019702

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