Jimmy Owns a Trucking Business

question 38

Multiple Choice

Jimmy owns a trucking business. During the current year he incurred the following: What is the total amount of deductible expenses?

• A)$115,000
• B)$123,000
• C)$108,000
• D)$144,000

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Definitions:

Agent Liability

The legal responsibility of an agent to act in the best interest of their principal, facing consequences for failure to comply.

Apparent Authority

The power that a third party perceives an agent to have, based on the principal's representations, leading the third party to reasonably believe that the agent is authorized.

Undisclosed Principal

A person whose existence is unknown to the third party in a contract made by an agent on their behalf.

Apparent Authority

The power that a third party perceives an agent has over the principal, based on the principal's behavior.