A corporation that transfers restricted stock to an employee as compensation may deduct the stock's fair market value in the year of transfer even if the employee doesn't recognize the value as gross income in the year of transfer. T/F also explain the reason, thanks.

Please proivide tax implications at both the Corporate and Shareholder level for each response. Add IRC to support each answer.

Which of the following factors does the IRS consider irrelevant when determining reasonable compensation for a shareholder-employee of an S corporation?    Timing and manner of paying bonuses to key people.  Dividend history.  Consistent amount of compensation year after year.  Compensation agreements.

Stock dividends and stock splits are similar in that both do not change total stockholders’ equity. (True/False) A company must accrue a liability for sick pay that accumulates but does not vest. (True/False) A company may exclude a short-term obligation from current liabilities if the firm can demonstrate an ability to complete a refinancing. (True/False) Federal income taxes should be included in an employer’s payroll tax expense. (True/False) Whether an employee earns $80,000 a year or $800,000 a year, all of the earnings will be subject to Medicare deductions. (True/False)   To record compensated absences as a liability GAAP establishes four criteria. The employer needs to meet any two of these four criteria in order to recognize a liability for compensated absences. (True/False)   Stock dividends and stock splits both cause the number of shares outstanding to increase and retained earnings to decrease. (True/False)