Final answer:
The exact salary Delaine must receive from October 1 through December 31, 2017, cannot be determined without specific information about her role and the PSC's finances. However, the salary should be reasonable and commensurate with the services provided, industry standards, and comparable market salaries for similar positions.
Step-by-step explanation:
If a Personal Service Corporation (PSC) cannot meet the business purpose test for a fiscal year, it means that the PSC is not recognized by the IRS as having a valid business purpose for using a fiscal year. This has certain tax implications, including the requirement that the employee—in this case, Delaine—receive a reasonable compensation (salary) that corresponds to the services provided during the year. If Delaine is an employee of the PSC, the IRS provides guidelines to determine what constitutes 'reasonable compensation'.
While determining the exact amount of salary Delaine must receive from October 1 through December 31, 2017, without knowing the specifics, such as Delaine's role, responsibilities, and the services provided during this period, and the financial details of the PSC, it's impossible to state a specific amount. However, the IRS expects that the compensation aligns with the industry standards for similar services and matches the level of performance and work provided during that time.
The PSC would need to consider various factors when determining Delaine's salary, including but not limited to the PSC's revenues, the nature of the services provided, Delaine's qualifications, and the comparable salaries for similar positions in the market. It is also necessary to account for the full year and prorate the annual salary for the three months from October to December.