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In evaluating what is "reasonable compensation "for a C corporation shareholder employee, what currently appears to...

In evaluating what is "reasonable compensation "for a C corporation shareholder employee, what currently appears to be the most important factor based on court decisions? a. The corporation's dividend paying history, b. Shareholder employee's stock ownership percentage, c. The "hypothetical outside investor " standards, d. The length of service of the shareholder-employee

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Answer #1

Answer is c

The "hypothetical outside investor " standards

according to the trends of court decisions hypothetical outside investor standard appears to be most important factor for assessing the reasonableness of compensation

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