# Bring comparable facts to the adviser

First complete the record using this book’s fictional case, marking each field as known, assumed or unresolved. Explain one conclusion using the supporting amounts or documents. Then compare your reasoning with the discussion below. For personal use, keep private financial details in secure records; this worksheet needs no account numbers or credentials.

| Record field | Your observation |
|---|---|
| Entity and shareholder eligibility |  |
| Tax-year start / proposed effective date |  |
| Profit before owner compensation |  |
| Actual owner duties and time |  |
| Compensation evidence |  |
| Employer and employee payroll effects |  |
| Incremental recurring costs |  |
| State treatment and charges |  |
| Good / lean year assumptions |  |
| Filing, acceptance and review responsibilities |  |

### Questions worth checking

A chart shows that lower wages leave more residual corporate profit. It has demonstrated arithmetic, not reasonable compensation. The salary must be supported independently of the preferred tax result.

The model begins at $85,000 in both alternatives. If one version begins at $100,000, the analysis mixes an operating-profit difference with the election. Restore comparable starting conditions before drawing a conclusion.

A $1,500 assumed benefit less $2,800 in administration leaves negative $1,300 before other effects. A recommendation requires the full tax comparison, actual quotes, state treatment and evidence of the owner’s work.