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This Year, Mrs

Question 89

Multiple Choice

This year, Mrs. Pike's compensation from her corporate employer consisted of $325,000 current salary and $75,000 unfunded deferred compensation payable upon her retirement at age 66. Which of the following statements is true?


A) This year, Mrs. Pike must include $400,000 in gross income, and her employer is allowed a $400,000 deduction.
B) This year, Mrs. Pike must include $325,000 in gross income, and her employer is allowed a $400,000 deduction.
C) This year, Mrs. Pike must include $400,000 in gross income, and her employer is allowed a $325,000 deduction.
D) This year, Mrs. Pike must include $325,000 in gross income, and her employer is allowed a $325,000 deduction.

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