Q3VASolution - ACCTG321 Spring2010 Quiz#2 VersionA 1.

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ACCTG 321 Spring 2010 Quiz #2 Version A 1. According to the Internal Revenue Code §162, deductible business expenses must be _________________.  a. incurred for the production of investment income b. ordinary and necessary c. minimized d. appropriate and measurable e. personal and justifiable 2. Which of the following is a true statement?  a. Interest expense is not deductible if the loan is used to purchase municipal bonds. b. Insurance premiums are not deductible if paid for "key man" life insurance. c. One half of the cost of business meals is not deductible. d. All of the above are true. e. None of the above is true. 3. Which of the following is a true statement?  a. Meals are never deductible as a business expense. b. An employer can only deduct half of any meals provided to employees. c. The cost of business meals must be reasonable. d. A taxpayer can only deduct a meal for a client if business is discussed during the meal. e. None of the above is true. 4. Which of the following is a true statement about travel that has both business and personal aspects? 
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ACCTG 321 Spring 2010 Quiz #2 Version A a. Transportation costs are always fully deductible.
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This note was uploaded on 11/03/2010 for the course ACCTG 321 taught by Professor Will during the Spring '08 term at San Diego State.

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Q3VASolution - ACCTG321 Spring2010 Quiz#2 VersionA 1.

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