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 when he retires in 2025. He 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 2025.

a. Compute MN's financial statement expense for the PEO's compensation.

b. Compute MN's 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 2025?

Assume the taxable year is 2018.