Nicole and Braxton are each 50 percent shareholders of NB Corporation. Nicole is also an...
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Accounting
Nicole and Braxton are each 50 percent shareholders of NB Corporation. Nicole is also an employee of the corporation. NB is a calendar-year taxpayer and uses the accrual method of accounting. The corporation pays its employees monthly on the first day of the month after the salary is earned by the employees. What issues must NB consider with respect to the deductibility of the wages it pays to Nicole if Nicole is Braxtons sister? What issues arise if Nicole and Braxton are unrelated?
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