Frederic Liszt is a newly appointed executive director of Piano Music Ltd, a listed company that manufacture high-end pianos for concert halls around the world. Frederic has provided consultancy service to Piano Music Ltd for the past 10 years. In the most recent financial year these services amounted to $400,000. Wolfgang Bach is the finance director of Piano Music Ltd. Wolfgang has recently asked his son, Ludwig Bach to undertake an internship within the finance department of Piano Music Ltd, and receive a salary of $30,000 per annum, which is normal compensation for the role. Required:

Frederic Liszt is a newly appointed executive director of Piano Music Ltd, a listed company that manufacture high-end pianos for concert halls around the world. Frederic has provided consultancy service to Piano Music Ltd for the past 10 years. In the most recent financial year these services amounted to $400,000. Wolfgang Bach is the finance director of Piano Music Ltd. Wolfgang has recently asked his son, Ludwig Bach to undertake an internship within the finance department of Piano Music Ltd, and receive a salary of $30,000 per annum, which is normal compensation for the role. Required:

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 47RC

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