loader  Loading... Please wait...

Question(s) / Instruction(s):

Al is a 25% shareholder and the president of ABC, Inc. The Board of Directors of ABC has decided to pay him an additional $20,000 for the year based on outstanding performance and will pay the $20,000 as a dividend. Jay is a 25% shareholder and the president of JKL, Inc. The Board of Directors of JKL has decided to pay him an additional $20,000 for the year based on outstanding performance and will pay the $20,000 as salary. Both Al and Jay are in the 35% income tax bracket as individual taxpayers. Discuss how these payments will affect the tax liabilities of Al, Jay, and the corporations.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$1.79

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494