Which of the following is likely to be a fully

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South-Western Federal Taxation 2020: Individual Income Taxes
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Chapter 3 / Exercise 2
South-Western Federal Taxation 2020: Individual Income Taxes
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3) Which of the following is likely to be a fully deductible business expense? A) Salaries in excess of the industry average paid to attract talented employees. B) The cost of employee uniforms that can be adapted to ordinary personal wear. C) A speeding fine paid by a trucker who was delivering a rush order. D) The cost of a three-year subscription to a business publication. E) None of the choices are likely to be deductible. Answer: Explanation: The fine is against public policy, the three-year subscription must be amortized, and uniforms are only deductible if not adaptable to ordinary wear. A
4) Ronald is a cash method taxpayer who made the following expenditures this year. Which expenditure is completely deductible in this period as a business expense? D
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South-Western Federal Taxation 2020: Individual Income Taxes
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 2
South-Western Federal Taxation 2020: Individual Income Taxes
Young/Nellen/Hoffman
Expert Verified
amounts paid to collect those receivables are fully deductible as an ordinary and necessary business expense.

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