Rebecca, age 45, is a key employee of Sterns Envelope Company. To reward Rebecca for her efforts this year, the company has entered into an agreement with her to defer future annual bonuses until she retires at age 65. The funds are deposited each year in a money market account for Rebecca. She has no right to these funds until she retires at age 65, becomes disabled, or separates from service. The income tax implication that applies to Sterns Envelope Company for its annual contribution to this nonqualified deferred compensation plan is that the company can

A) never deduct the contributions because the plan is nonqualified and only contributions to a qualified plan are deductible. B) deduct the contributions each year as they are made because the contributions are an ordinary and necessary business expense. C) deduct the contributions only in the year they are includible in Rebecca's income. D) deduct currently both the amount of the contributions and any appreciation in value