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Question - Wanda is the Chief Executive Officer of Pink Corporation, a publicly traded, calendar year corporation. For the current year, Wanda's compensation package consists of: Cash compensation $2.5 million, Nontaxable fringe benefits 250,000, Taxable fringe benefits 150,000, Bonus tied to company performance 2 million. How much of Wanda's compensation is deductible by Pink Corporation?
a. $1,000,000.
b. $1,250,000.
c. $3,250, 000.
d. $4,900,000.
e. None of the above.
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