Emmanuel,an executive,receives a $600,000 payment under a golden parachute agreement.Emmanuel's base amount from Blue Corporation is $140,000.What amount,if any,is deductible by the corporation?
A)$0
B)$140,000
C)$460,000
D)$600,000
E)None of these

Question

Quizplus · Accepted Answer

$140,000.The payment is treated as a golden parachute arrangement because it exceeds $420,000 (3 × $140,000).Therefore,Blue Corporation would not be able to deduct $460,000 ($600,000 - $140,000)of the payment under § 280G.

Emmanuel,an Executive,receives a $600,000 Payment Under a Golden Parachute Agreement