TAX_T1_Sol6.pdf - 32. Award: 10.00 points Which of the...

32.
Award: 10.00 points
Which of the following expenditures is most likely to be deductible for a construction business?
A fine for a zoning violation.
A tax underpayment penalty.
An "under the table" payment to a government representative to obtain a better price for
raw materials.
A payment to a foreign official to expedite an application for a business permit.
An arm's length payment to a related party for emergency repairs of a sewage line.
All of the other alternatives are against public policy.
33.
Award: 10.00 points
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Determine the
limits on deducting business expenses.
Which of the following is an explanation for why insurance premiums on a key employee are not
deductible?