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The table below presents the compensation for Chloe, who was appointed as the Chief Marketing Officer (CMO) of Zeta Corporation, a privately-held company in the



The table below presents the compensation for Chloe, who was appointed as the Chief Marketing Officer (CMO) of Zeta Corporation, a privately-held company in the consumer goods sector, effective July 1, 2022. Determine the deductible portion of Chloe's compensation on Zeta Corporation's 2023 corporate income tax return.

ComponentAmount ($)
Base Salary1,100,000
Annual Bonus160,000
Stock Options7,000

Chloe's employment contract specifies that her bonus is based on achieving specific marketing campaign success metrics. The stock options vest over a five-year period, with 20% vesting annually beginning on the grant date.

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