Carlos, a Self-Employed Construction Contractor, Contributed $5,000 to the Re-Election

question 66

Multiple Choice

Carlos, a self-employed construction contractor, contributed $5,000 to the re-election campaign of the local mayor in the hopes that his planned construction project will be approved.How much is Carlos's deduction for this political contribution?

• A)$0
• B)$25
• C)$2,500
• D)$5,000

---

Definitions:

Debt Ratio

A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.

Window Dressing

Techniques employed by firms to make their financial statements look better than they really are.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Long-Term Debt

Borrowings and financial obligations that are due for repayment beyond one year's time, often used for major investments or acquisitions.