a. $4,633b. $3,544c. $2,217*d. $1,733
92. PDQ, Inc., a calendar-year company, paid $15,000 as a prepayment of two years of its liability insurance on November 1 of the current year. How much insurance expense can PDQ deduct on its current year income tax return?
93. HMP Inc. reported the following information: Net sales (U.S. production)$550,000Cost of goods sold300,000Operating expenses100,000W-2 wages for the year(included in cost of goods sold and operating expenses)80,000What is HMP's taxable income?
94. Moving expenses qualify as deductions if:
95. Taxpayers generally can deduct meal and entertainment expenses provided that the expenses are:a. less than five percent of the employer's gross profits.*b. directly related to or associated with the taxpayer's trade or business.c. spent solely on employees.