Karl Stick is president of Stock Company. He also owns 100 percent of its stock. Karl's salary is \(\$ 220,000\). At the end of the year, Karl was paid a bonus of \(\$ 100,000\) because the firm had a good year. Stock Company deducted \(\$ 320,000\) as compensation expense for the year. Upon audit, \(\$ 80,000\) of the deduction was disallowed. How could this happen? How would you advise Stock Company?