Judy Is a Self-Employed Musician Who Performs for a Variety

question 55

Essay

Judy is a self-employed musician who performs for a variety of events. This year, Judy was fined $250 by the city for violating the city's noise ordinance with a relatively loud performance. As a consequence, Judy contributed $1,000 to a campaign committee formed to recall the city's mayor. Judy normally hires three part-time employees to help her schedule events and transport equipment. Judy paid a total of $33,000 to her employees through June of this year. In June, Judy fired her part-time employees and hired her husband to replace them. However, Judy paid him $55,000 rather than $33,000. Judy is on the cash method and calendar year, and she wants to know what amount of these expenditures is deductible as business expenses.

---

Definitions:

Unconscious Processing

Cognitive processes that occur without consciousness or awareness, influencing thoughts, feelings, and behaviors without the individual's explicit understanding.

Bird Songs

Vocalizations produced by birds, which can serve various functions including territorial defense, attraction of mates, and communication of environmental cues.

Bee Dances

A form of communication among bees where they perform specific movements to indicate the direction and distance of food sources to other bees.

Infinite Combinations

The potential for limitless mixing and matching of components in a system or set.