Wanda's compensation that is deductible by Pink Corporation is equal to $1,250,000.
<h3>What is a corporation?</h3>
A corporation can be defined as a corporate organization that has facilities and owns assets that're used for the production of goods and services in at least one country, other than its headquarter which is located in its home country.
<h3>What is taxation?</h3>
Taxation can be defined as the involuntary fees that are levied on individuals or business firms by the government of a particular country, so as to generate revenues that can be used to fund public projects, institutions and activities.
Mathematically, Wanda's compensation that is deductible by Pink Corporation is given by:
Wanda's compensation = cash compensation × deductible percentage
Wanda's compensation = $2,500,000 × 50%
Wanda's compensation = $1,250,000.
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Complete Question:
Wanda is the Chief Executive Officer of Pink corporation, a publicly traded, calendar year C corporation. For the current year, Wanda's compensation package consists of:
Cash compensation $2,500,000
Nontaxable fringe benefits 250,000
Taxable fringe benefits 150,000
Bonus tied to company performance 2,000,000
How much of Wanda's compensation is deductible by Pink Corporation?
