DAVID IS THE CEO FOR MID ATLANTIC COMPUTER ASSOCIATES. AS PART OF HIS COMPENSATION AGREEMENT, HE NEGOTIATES GOLDEN PARACHUTE PACKAGE THAT PAYS HIM 3.5 MILLION IN THE EVENT THE COMPANY IS ACQUIRED OR HE IS TERMINATED. MID ATLANTIC WAS TAKEN OVER BY BRILLIANT MICRO COMPANY, AND DAVID WAS TERMINATED AND PAID 3.5 MILLION. HIS BASE AMT OF COMPENSATION IS $1 MILLION. WHAT IS TAX effect to Mid-Atlantic? A. A deduction will not be allowed for any of the compensation B. A deduction will not be allowed for $500,000 of compensation C. A deduction will not be allowed for $2.5 million of compensation D. A deduction is allowed for $3.5 million