Which of the Following Is NOT Likely to Be Allowed

question 12

Multiple Choice

Which of the following is NOT likely to be allowed as a current deduction for a landscaping and nursery business?

• A) cost of fertilizer
• B) accounting fees
• C) cost of a greenhouse
• D) cost of uniforms for employees
• E) a cash settlement for trade name infringement

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Definitions:

Capital Structure

The mix of a company's debt, equity, and other sources of financing used to fund its operations and growth.

Cost of Capital

The minimum return that a business needs to generate on its projects to preserve its marketplace value and draw in financing.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting, legal, and registration fees.

Tax Rate

The rate at which taxes are imposed on the income of a person or business.