Question: Silver pays Sam $ 2 , 5 0 0 , 0 0 0 compensation during the current year. The compensation consists of the following payments:

Silver pays Sam $2,500,000 compensation during the current year. The compensation consists of the following payments:
Salary
$1,400,000
Bonus tied to company performance
1,070,000
Pension plan contributions
20,000
Nontaxable fringe benefits
10,000
From these payments, what amount can Silver Corporation deduct on its income tax return?

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