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Michelle is the CEO of RST Corporation, a private, non-publicly-traded, calendar year corporation that uses the accrual basis of accounting for tax purposes. In 2023,

Michelle is the CEO of RST Corporation, a private, non-publicly-traded, calendar year corporation that uses the accrual basis of accounting for tax purposes. In 2023, RST Corporation paid Michelle the following compensation:
Type of Payment Amount
Salary $900,000
Stock Options $200,000
How should RST Corporation treat these payments for tax deduction purposes?

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