FIFO Corporation,a Public-Traded Corporation,pays Its CFO a Basic Salary of $900,000

question 100

Multiple Choice

FIFO Corporation,a public-traded corporation,pays its CFO a basic salary of $900,000 and a $500,000 bonus awarded for exceptional service.Her compensation package is considered reasonable compensation when compared to other similar corporations and her level of responsibilities.FIFO can deduct

• A)$500,000.
• B)$900,000.
• C)$1,000,000.
• D)$1,400,000.

---

Definitions:

Tenant

An individual or entity that occupies property or land rented from a landlord under a lease agreement.

Rent

The payment made by a tenant to a landlord for the use of property, land, or a building.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm’s financial condition.

Accrued Revenues

Income generated but not yet received in cash or documented at the time of the statement.