Which of the Following Expenditures Would Not Be Deductible as a Business

question 6

Multiple Choice

Which of the following expenditures would not be deductible as a business expense?

• A)Costs of holding a business training session at a local hotel
• B)The fare for flying business class to an overseas meeting
• C)Paying the interest on a loan for the owner's grandfather
• D)Paying the owner's 17 year old son a salary of $9 per hour for cleaning and janitor services

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Definitions:

Federal Income Tax

A charge imposed by the federal government of the United States on the yearly income of entities such as individuals, corporations, trusts, and various legal bodies.

Corporation

A legal entity recognized by law, created by individuals or shareholders, with rights and liabilities distinct from those of its owners.

Attract Capital

Strategies or actions taken by businesses to draw in investment funds from outside sources.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee for a beneficiary, including acting with loyalty and care.