CEO of start-up with 110 employees signs an agreement that if the start-up is purchased and she is replaced, she will receive $1,000,000. The start-up is indeed acquired and she is released and paid $1,000,000. Her average annual compensation for the past few years was $200,000. What should you advise her regarding the tax treatment of the $1,000,000?

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In advising the CEO of the startup regarding the tax treatment of the 1000000 payment received upon ... View the full answer