Final answer:
The corporation must limit its deduction for salary to the total amount of reasonable compensation paid to the employee during the fiscal year.
Step-by-step explanation:
To determine the amount the corporation must limit its deduction for salary for its fiscal year ending September 30, 2018, we need to consider the limitations imposed by the tax code. The tax law limits deductions for salaries to a certain extent, depending on the type of corporation and the individual's role in the corporation. For an S corporation and employees who own more than 2% of the corporation, the deduction is limited to the amount of reasonable compensation paid for services rendered.
In this case, Delaine is an employee of the PSC (Professional Services Corporation). Assuming Delaine is not an owner of more than 2% of the corporation, the deduction for salary paid to Delaine can be limited to the amount of reasonable compensation.
Given that Delaine received a salary of $50,000 for October 1 through December 31, 2017, and a salary of $300,000 from January 1, 2018, through September 30, 2018, the corporation must limit its deduction for salary to the total amount of reasonable compensation paid to Delaine during this fiscal year, which is $350,000 ($50,000 + $300,000).