Vermillion, Inc., a publicly held corporation (not a TARP recipient), pays the following salaries to its executives:
|
Salary |
Bonus |
Retirement Plan Contribution |
|
|
CEO |
$2,000,000 |
$100,000 |
$80,000 |
|
Executive vice president |
1,800,000 |
90,000 |
72,000 |
|
Treasurer |
1,600,000 |
–0– |
64,000 |
|
Marketing vice president |
1,500,000 |
75,000 |
60,000 |
|
Operations vice president |
1,400,000 |
70,000 |
56,000 |
|
Distribution vice president |
1,200,000 |
60,000 |
48,000 |
|
Research vice president |
1,100,000 |
–0– |
44,000 |
|
Controller |
800,000 |
–0– |
32,000 |
Vermillion normally does not pay bonuses, but after reviewing the results of operations for the year, the board of directors decided to pay a 5% bonus to selected executives. What is the amount of these payments that Vermillion may deduct?