Which of the Following Expenditures Is Completely Deductible

question 33

Multiple Choice

Which of the following expenditures is completely deductible?

• A)$1,000 spent on compensating your brother for a personal expense.
• B)$50 spent on meals while traveling on business.
• C)$2,000 spent by the employer on reimbursing an employee for entertainment.
• D)All of these expenses are fully deductible.
• E)None of these expenses can be deducted in full.

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Definitions:

Interest Accrued

The amount of interest that has been earned or incurred but has not yet been paid or received.

Note Paid

Represents the full repayment or settlement of the amount owed as denoted in a promissory note.

Interest Accrued

Interest that has been earned but not yet received or recorded.

Calculate Interest

Determining the cost of borrowing money or the profit from lending money, based on the principal sum, rate, and time.