Gary, a Sole Proprietor, Incurs the Following Expenses in His

question 101

Multiple Choice

Gary, a sole proprietor, incurs the following expenses in his record store business. Gary can deduct the following as business expenses in the current year
I.$3,000 in legal fees to acquire a competing record store.
II.$500 to the local police chief to not write parking tickets to his customers whose time ran-out on parking meters in front of his store.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Emotional

Related to feelings or expressions of emotion, often indicating a person's mood or affective state.

Cognitive

Relating to mental processes such as awareness, perception, reasoning, and judgment.

Intellectual

Relating to the ability to think and understand ideas and information at a high level.

Behavioral

Pertaining to the ways in which behavior is learned, exhibited, and modified in response to the environment.