Solution-Can plum deduct any or all of the salaries paid to

Can plum deduct any or all of the salaries paid to john

Reference no: EM131786334

Question - John and jean own 80 percent and 20 percent respectively, of palm Corporation stock. Thanks to their hard work, Plum's software sales have sky rocketed. In its first year of operation plum's earning were minimal, but four years later, Plum grossed $10 million. plum compensated John and Jeans as follows: John received a bonus of 19 percent of net profits at the end of each year. Plum never paid any dividends. Can plum deduct any or all of the "salaries" paid to John and Jean?

Reference no: EM131786334

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Can plum deduct any or all of the salaries paid to john

Reference no: EM131786334

Reference no: EM131786334

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