S-Corp Meals and Entertainment

[nj_don]

Please let me know if I have this right:

For a single owner S-Corp:

Owner/Employee incurs meals and entertainment expenses which s/he submit to the S-Corp which in turn issues full reimbursement amount.  The S-Corp claims these charges as meals which are only 50% deductible. The remaining 50% will then be applied to the shareholder(s) K1 which will appear as income to the shareholder and they have to pay taxes on this difference?

[RichardK]

The K-1 income is increased by the disallowance of the 50% meals deduction, so effectively the owner is paying tax on that 50%, however the owner does not enter 50 %that as income.