Posted: March 3rd, 2014

Jason, an architect, is the sole shareholder of Purple Corporation

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, 2012. How much salary must Purple pay Jason during the period November
1 through December 31, 2012, to permit the corporation to continue to use its fiscal year
without negative tax effects?

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