Turner, a Successful Executive, Is Negotiating a Compensation Plan with His

Multiple Choice

Turner, a successful executive, is negotiating a compensation plan with his potential employer.The employer has offered to pay Turner a $600,000 annual salary, payable at the rate of $50,000 per month.Turner counteroffers to receive a monthly salary of $40,000 ($480,000 annually) and a $180,000 bonus in 5 years when Turner will be age 65.

A) If the employer accepts Turner's counteroffer, Turner will recognize $55,000 ($660,000 / 12) each month.
B) If the employer accepts Turner's counteroffer, Turner will recognize as gross income $40,000 per month and $180,000 in year 5.
C) If the employer accepts Turner's counteroffer, Turner will be in constructive receipt of $50,000 per month.
D) If the employer accepts Turner's counteroffer, Turner will be in constructive receipt of $50,000 per month and the $180,000 bonus.
E) None of the above.