Is jennys salary fully deductible by the corporation

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Reference no: EM13518273

Gaudy Gift Gallery Corporation (owned 100 percent by Barbara) operates a gift shop.

Barbara employs her daughter, Jenny, after school and on weekends. Other employees with similar responsibilities are paid $7 per hour while Jenny is paid $15 per hour. Jenny earned $15,000 in the current year from the store. Is Jenny's salary fully deductible by the corporation? Explain.

Reference no: EM13518273

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