The table below summarizes the compensation for Ava, who was appointed as the Chief Operating Officer (COO)
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Question:
The table below summarizes the compensation for Ava, who was appointed as the Chief Operating Officer (COO) of Delta Corporation, a publicly-traded company in the technology sector, effective January 1, 2022. Determine the deductible portion of Ava's compensation on Delta Corporation's 2023 corporate income tax return.
Component | Amount ($) |
---|---|
Base Salary | 1,200,000 |
Performance Bonus | 180,000 |
Stock Options | 6,000 |
Ava's employment contract specifies that her bonus is contingent upon achieving specific operational efficiency goals. The stock options vest over a five-year period, with 20% vesting annually beginning on the grant date.
Posted Date: