Wanda Is the Chief Executive Officer of Pink Corporation, a Publicly

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: $\begin{array}{lr}\text { Cash compensation } & \$ 2,500,000 \\\text { Nontaxable fringe benefits } & 250,000 \\\text { Taxable fringe benefits } & 150,000 \\\text { Bonus tied to company performance } & 2,000,000\end{array}$ 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.