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The taxpayer is the sole owner-employee of a small corporation that prepares tax returns. Before paying himself any salary or dividends or taking fringe benefits, the corporation has taxable income of $100,000. Summarize the tax consequences to both parties

a. paying a salary of $50,000

b. paying no salary but dividends of $50,000

c. providing $10,000 of fringe benefits and $40,000 of salary

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91971960

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