Which of the Following Business Expense Deductions Is Most Likely

question 24

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 these are likely to be unreasonable in amount.
• E) None of these is likely to be unreasonable in amount.

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Definitions:

Email Messages

Digital correspondence sent and received through email services, consisting of a subject, body text, and often attachments.

Deleting Contacts

The process of removing personal or business contact information from a digital address book or database.

People View

A user interface option in some software applications, particularly email and social networking services, that prioritizes content or messages from human contacts.

Email Messages

Electronic messages sent over a network using email protocols; they can contain text, hyperlinks, attachments, and rich text formatting.