Question
The table below summarizes the compensation for Ulysses, who was appointed as the Chief Human Resources Officer (CHRO) of Gamma Corporation, a publicly-traded company in
The table below summarizes the compensation for Ulysses, who was appointed as the Chief Human Resources Officer (CHRO) of Gamma Corporation, a publicly-traded company in the automotive industry, effective June 1, 2022. Determine the deductible portion of Ulysses's compensation on Gamma Corporation's 2023 corporate income tax return.
Component | Amount ($) |
---|---|
Base Salary | 800,000 |
Annual Bonus | 100,000 |
Stock Options | 5,000 |
Ulysses's employment contract stipulates that his bonus is based on achieving specific employee engagement and retention goals. The stock options vest over a four-year period, with 25% vesting annually beginning on the grant date.
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