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Charades Corporation Is a Publicly Held Company Listed on the New

Question 1317

Multiple Choice

Charades Corporation is a publicly held company listed on the New York Stock Exchange. During the current year, its chief executive officer, Samantha Chen, receives the following compensation from the corporation: salary, $1,500,000; commissions based on sales generated by Samantha, $200,000; payments to a qualified pension plan, $30,000; and tax- free fringe benefits, $20,000. What is the total amount that Charades may deduct?


A) $1,000,000
B) $1,500,000
C) $1,750,000
D) $1,050,000

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