Question
The table below presents the compensation for Benjamin, who was recruited as the Chief Financial Officer (CFO) of Nova Corporation, a privately-owned company in the
The table below presents the compensation for Benjamin, who was recruited as the Chief Financial Officer (CFO) of Nova Corporation, a privately-owned company in the healthcare industry, effective March 1, 2022. Determine the deductible portion of Benjamin's compensation on Nova Corporation's 2023 corporate income tax return.
Component | Amount ($) |
---|---|
Base Salary | 1,300,000 |
Performance Bonus | 250,000 |
Stock Grants | 8,000 |
Benjamin's employment contract outlines that his bonus is contingent upon achieving specific financial performance metrics. The stock grants vest over a four-year period, with 25% vesting annually beginning on the grant date.
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