Which of the Following Business Expense Deductions Is Most Likely

question 47

Multiple Choice

Which of the following business expense deductions is most likely to be unreasonable in amount?

• A) Compensation paid to the taxpayer's spouse in excess of salary payments to other employees.
• B) Amounts paid to a subsidiary corporation for services where the amount is in excess of the cost of comparable services by competing corporations.
• C) Cost of entertaining a former client when there is no possibility of any future benefits from a relation with that client.
• D) All of the choices are likely to be unreasonable in amount.
• E) None of the choices are likely to be unreasonable in amount.

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