Wanda is the Chief Executive Officer of Pink corporation, a publicly traded, calendar year C corporation.  For the current year, Wanda's compensation package consists of:
                              
?
Cash compensation 
$ 2,500,000Nontaxable fringe benefits  250,000Taxable fringe benefits     150,000Bonus tied to company performance  2,000,000?
                         How much of Wanda's compensation is deductible by Pink Corporation?

A. $1,000,000.
B. $1,250,000.
C. $3,250,000.
D. $4,900,000.
E. None of these.


Answer: B

Business

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