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State Construction Company is owned equally by Andy, Bill and Charlie. Andy works in the...

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Accounting

State Construction Company is owned equally by Andy, Bill and Charlie. Andy works in the corporation full-time, and Bill and Charlie work elsewhere. Andy's employment with State specifies an annual salary of $50,000. This year, Andy suggested that the company could expand if it purchased more equipment, and he offered to delay receiving $20,000 of his salary so the funds could be used to purchase equipment. Bill and Charlie agreed, and State purchased the equipment. State is expected to have enough cash to pay Andy by early March of next year. What tax issues should Andy consider?

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