Problem 6-41 (LO. 3,4) Amber, a publicly held corporation, currently pays its pr

Question

Problem 6-41 (LO. 3,4) Amber, a publicly held corporation, currently pays its president an annual salary of $900,000. As a means of increasing company profitability, the board of directors increased the president's compensation effective January 1, 2017, with a performance-based compensation program. This program increased the president's compensation by $300,000 in 2017, and it is projected to increase her compensation by approximately $350,000 in 201s. Prepare a letter to Amber's board of directors that identifies the amount of compensation that will be deductible by Amber in 2018 and explains whether any changes should be made to the president's compensation plan in 2018. Address the letter to the board chairperson, Angela Riddle, whose address is 100 James Tower, Cleveland, OH 44106. Maloney, Raabe, Hoffman, & Young, CPAs 5191 Natorp Boulevard Mason, OH 45040 September 16, 2018 2 Ms. Angela Riddle, Chairperson Board of Directors Amber, Inc. 100 James Tower Cleveland, OH 44106 Check My Work

Explanation / Answer

Paragraph 1:

a) $1,000,000

b)In

c) also

d) $1,200,000

Paragraph B.

a)includes

b)will

Paragraph C

a) donot make

c)subject

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