Essay
Kirby,the sole shareholder of Falcon,Inc.,leases a building to the corporation.The taxable income of the corporation for 2008,before deducting the lease payments,is projected to be $500,000.
a.What are the tax consequences to Kirby and to Falcon if Kirby leases a building to the corporation for $500,000?
b.Is there a potential pitfall? How would it change the tax consequences to Kirby and to Falcon?
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a.Kirby would include the $500,000 of le...View Answer
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