DAVID IS THE CEO FOR MID ATLANTIC COMPUTER ASSOCIATES. AS PART OF HIS COMPENSATION AGREEMENT,...
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DAVID IS THE CEO FOR MID ATLANTIC COMPUTER ASSOCIATES. AS PART OF HIS COMPENSATION AGREEMENT, HE NEGOTIATES GOLDEN PARACHUTE PACKAGE THAT PAYS HIM 3.5 MILLION IN THE EVENT THE COMPANY IS ACQUIRED OR HE IS TERMINATED. MID ATLANTIC WAS TAKEN OVER BY BRILLIANT MICRO COMPANY, AND DAVID WAS TERMINATED AND PAID 3.5 MILLION. HIS BASE AMT OF COMPENSATION IS $1 MILLION. WHAT IS TAX CONSEQUENCES TO DAVID
TAXABLE INCOME OF 2.5 MILLION AND EXCISE TAX OF 200,000
TAXABLE INCOME OF 2.5 MILLION AND EXCISE TAX OF 500,000
TAXABLE INCOME OF 3.5 MILLION AND EXCISE TAX IF 500,000
TAXABLE INCOME OF 3.5 MILLION AND EXCISE TAX OF 700,000
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