Which of the Following Items, If Any, Is Deductible

question 36

Multiple Choice

Which of the following items, if any, is deductible?

• A)Parking expenses incurred in connection with jury duty-taxpayer is a dentist.
• B)Substantiated gambling losses (not in excess of gambling winnings) from state lottery.
• C)Contributions to mayor's reelection campaign.
• D)Speeding ticket incurred while on business.
• E)Premiums paid on personal life insurance policy.

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Definitions:

Production Function

Describes the relationship between inputs used in production and the resulting output.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Diseconomies Of Scale

Situations where a firm's costs per unit increase as the scale of production increases, typically due to inefficiencies that arise from becoming too large.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.