LO.3 Agnes, an executive of a large corporation, receives a salary of $1.5 million. Taylor, who is

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LO.3 Agnes, an executive of a large corporation, receives a salary of $1.5 million. Taylor, who is an executive of another large corporation, receives a salary of $1.3 million. Agnes’s corporation is permitted to deduct all of her salary, while Taylor’s corporation is permitted to deduct only part of his. Neither corporation is a TARP recipient. Assuming that both salaries are reasonable, explain the result.

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