Saysha Is an Officer of a Local Bank That Merges

Multiple Choice

Saysha is an officer of a local bank that merges with a national bank, resulting in a change of ownership.She loses her job as a result of the merger, but she receives a cash settlement of $390,000 from her employer under her golden parachute.Her average annual compensation for the past five tax years is $110,000.Calculate any nondeductible excise tax Saysha must pay, if any.

A) $0.
B) $56,000.
C) $110,000.
D) $280,000.
E) Some other amount.