Verification: 44a8787c550138ed

FINC 355 Week 1-3 Discussion

Discuss factors involved in determining reasonable compensation.

http://Get Plagiarism-Free and Quality Papers Without Overpaying at

http://Solution preview:

As described in chapter two, the Internal Revenue Code allows employers who carries on a trade or business to deduct a reasonable compensation allowance for salaries and other personal services rendered. In order to do so, the company’s payment must meet a reasonableness test which reviews several factors to determine if the compensation levels claimed are reasonable in comparison to the company’s profits and the services provided. These factors include the following:

1.Compensation paid to the company’s executives in comparison to executives at comparable companies with similar positions.

2.The qualifications of the employee in the position.

3.The scope of duties performed by that employee.

4.The complexity of the organization and its size.

5.Analysis of the compensation paid compared to the company’s net and gross income.

6.The compensation policy in place for all of the organization’s employees.

7.Economic conditions on local and national industry levels.

8.Comparison of compensation to the dividend distributions to shareholders.

Just in case you need an assignment done, hire us. Using our writing services will make your life easier because we deliver exceptional results. Use us to get an A!

We are the Best!


275 words per page

You essay will be 275 words per page. Tell your writer how many words you need, or the pages.

12 pt Times New Roman

Unless otherwise stated, we use 12pt Arial/Times New Roman as the font for your paper.

Double line spacing

Your essay will have double spaced text. View our sample essays.

Any citation style

APA, MLA, Chicago/Turabian, Harvard, our writers are experts at formatting.

We Accept

Secure Payment
Image 3

Subjects We Cover