This year, Perry Pike's compensation from Woodland Incorporated consisted of $325,000 current salary and $75,000 unfunded deferred compensation payable upon retirement at age 66. Which of the following statements is true?
a. This year, Perry must include $400,000 in gross income, and Woodland is allowed a $400,000 deduction.
b. This year, Perry must include $325,000 in gross income, and Woodland is allowed a $400,000 deduction.
c. This year, Perry must include $400,000 in gross income, and Woodland is allowed a $325,000 deduction.
d. This year, Perry must include $325,000 in gross income, and Woodland is allowed a $325,000 deduction.