Laura, the controlling shareholder and an employee of Southwest Corporation, receives an annual salary of $750,000. Based on several factors including the size of the corporation's operations and a comparison of salary received by officers of comparably-sized corporations, the IRS contends that Laura's salary should be no higher than $600,000. The court upheld the IRS' position. As a result, whih of the follwoing is true?

• A) $600,000 is deductible by the corporation; $750,000 is taxable to Laura.
• B) $750,000 is deductible by the corporation; $600,000 is taxable to Laura.
• C) $600,000 is deductible by the corporation; $600,000 is taxable to Laura.
• D) $750,000 is deductible by the corporation; $750,000 is taxable to Laura.