Ronald Is a Cash-Method Taxpayer Who Made the Following Expenditures

question 14

Multiple Choice

Ronald is a cash-method taxpayer who made the following expenditures this year. Which expenditure is completely deductible in this period as a business expense?

• A)$4,000 for rent on his office, which covers the next 24 months.
• B)$3,000 for a new watch for the mayor to keep "good relations" with city hall.
• C)$2,500 for professional hockey tickets distributed to a customer to generate "goodwill" for his business.
• D)$55 to collect an account receivable from a customer who has failed to pay for services rendered.
• E)None of the choices are completely deductible.

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Definitions:

Erector Spinae

A group of muscles that run vertically along the spine and are responsible for extending, laterally flexing, and rotating the vertebral column.

Vertebral Column

The spinal column is a series of vertebrae that extend from the skull to the lower back, serving as the main structural support for the body and protecting the spinal cord.

Interspinales

Muscles located between the spinous processes of the vertebrae, which assist in stabilizing the spine and facilitating movement.

Multifidus

A deep spine muscle important for stabilizing the joints within the spine during movement.