Question: The table below outlines the compensation for Blake, who was recruited as the Chief Financial Officer (CFO) of Epsilon Corporation, a privately-owned company in the



The table below outlines the compensation for Blake, who was recruited as the Chief Financial Officer (CFO) of Epsilon Corporation, a privately-owned company in the healthcare industry, effective March 1, 2022. Determine the deductible portion of Blake's compensation on Epsilon Corporation's 2023 corporate income tax return.

ComponentAmount ($)
Base Salary1,300,000
Performance Bonus250,000
Stock Grants8,000

Blake's employment contract outlines that his bonus is contingent upon achieving specific financial performance metrics. The stock grants vest over a four-year period, with 25% vesting annually beginning on the grant date.

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