Pamela Was an Officer in Green Restaurant Which Subsequently Went

question 55

Multiple Choice

Pamela was an officer in Green Restaurant which subsequently went bankrupt.Pamela started a new restaurant and,to establish goodwill,paid off the debts of $100,000 of Green Restaurant.She was under no obligation to do so.The $100,000 is

• A)deductible currently as an itemized deduction.
• B)capitalized because the expenses are not ordinary.
• C)deductible currently as a trade or business expense since the expenses are considered ordinary and necessary business expenses.
• D)none of the above.

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Definitions:

Counseling Psychologist

A psychologist who specializes in providing guidance and support to help individuals cope with personal, social, or behavioral issues affecting their well-being.

Clinical Psychologists

Professionals specializing in diagnosing, treating, and preventing mental, emotional, and behavioral disorders through psychological methods.

Providing Therapy

The act of offering professional psychological support and treatment to individuals or groups to improve mental health and well-being.

Cognitive Psychologist

A professional who studies mental processes such as perception, memory, thought, and problem-solving.