Sophia was hired as the Chief Operating Officer (COO) of Epsilon Corporation, a privately-owned company in the technology industry, effective June 1, 2022. Throughout the fiscal year 2023, Epsilon Corporation compensated Sophia as follows:

• Base Salary: $900,000
• Annual Incentive: $120,000
• Restricted Stock Awards (RSAs): Granted 6,000 RSAs with a fair market value of $80 per share at the time of grant.

Sophia's employment contract specifies that she is entitled to an annual incentive based on achieving operational efficiency targets. The RSAs vest over a four-year period, with 25% vesting annually beginning one year after the grant date.

Determine the deductible portion of Sophia's compensation on Epsilon Corporation's 2023 corporate income tax return.