Question
The table below outlines the compensation for Henry, who was recruited as the Chief Financial Officer (CFO) of Nebula Corporation, a publicly-traded company in the
The table below outlines the compensation for Henry, who was recruited as the Chief Financial Officer (CFO) of Nebula Corporation, a publicly-traded company in the healthcare industry, effective March 1, 2022. Determine the deductible portion of Henry's compensation on Nebula Corporation's 2023 corporate income tax return.
Component | Amount ($) |
---|---|
Base Salary | 1,400,000 |
Performance Bonus | 300,000 |
Restricted Stock | 8,000 |
Henry's employment contract specifies that his bonus is contingent upon achieving specific financial performance metrics. The restricted stock vests over a four-year period, with 25% vesting annually beginning on the grant date.
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