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Jason, an Architect, Is the Sole Shareholder of Purple Corporation

Question 43

Multiple Choice

Jason, an architect, is the sole shareholder of Purple Corporation, a personal service corporation. The corporation paid Jason a salary of $225,000 during its fiscal year ending October 31, 2011. How much salary must Purple pay Jason during the period November 1 through December 31, 2011, to permit the corporation to continue to use its fiscal year without negative tax effects?


A) $18,750.
B) $37,500.
C) $187,500.
D) $225,000.
E) None of the above.

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