When a publicly traded CEO's salary exceeds $1,000,000, the employee ________ taxed on the entire amount, and the employer ________ allowed a deduction on the entire amount.
A) is; is
B) is; is not
C) is not; is
D) is not; is not

Question

Quizplus · Accepted Answer

Section 162(m) limits the deduction for compensation paid by a publicly traded company to a covered employee to $1,000,000 per year.

When a Publicly Traded CEO's Salary Exceeds $1,000,000, the Employee