Code Sec. 162 would most likely permit an ordinary and necessary trade or business expense deduction in which situation:

HIJ, Inc. paid its president, a controlling shareholder, a salary of $500,000; its comparable competitor paid its president a salary of $400,000.

EFG Co. paid its president, an unrelated individual, a salary of $500,000; its comparable competitor paid its president a salary of $450,000.

ABC Corporation paid its president, an unrelated individual, a salary of $500,000; its comparable competitor paid its president a salary of $100,000.

All of the above.