Laura, the Controlling Shareholder and an Employee of Southtown Corporation

Laura, the controlling shareholder and an employee of Southtown Corporation, receives an annual salary of $750,000. Based on several factors including the size of the corporation's operations and a comparison of salary received by officers of comparably sized corporations, the IRS contends that Laura's salary should be no higher than $600,000. The Court upheld the IRS's position. As a result, which of the following is true?

A) $750,000 is deductible by the corporation; $600,000 is taxable to Laura.
B) $750,000 is deductible by the corporation; $750,000 is taxable to Laura.
C) $600,000 is deductible by the corporation; $750,000 is taxable to Laura.
D) $600,000 is deductible by the corporation; $600,000 is taxable to Laura.