MN’s compensation package for its PEO consisted of a $600,000 salary plus $200,000 unfunded deferred compensation. The PEO will receive the $200,000 upon retirement in 2027. The PEO is also a participant in MN’s qualified pension plan. MN contributed $21,000 to fund a $90,000 annual pension that the PEO will begin to receive in 2029. 

a. Compute MN’s current year financial statement expense for the PEO’s compensation. 

b. Compute MN’s current year tax deduction for the PEO’s compensation. 

c. Compute the PEO’s taxable compensation income. 

d. How much taxable income will the PEO recognize in 2029?