Which of the Following Share Issue Costs Does Not Qualify

question 22

Multiple Choice

Which of the following share issue costs does not qualify as a deduction from share capital?

• A) advertising of share issue
• B) costs of prospectus issue
• C) administration overheads
• D) audit expenses associated with the issue of a prospectus

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Definitions:

Principal Repayment

The process of paying back the original amount of money borrowed, excluding interest or other charges.

SUTA

State Unemployment Tax Act; a type of payroll tax that employers are required to pay to the state to fund unemployment benefits.

Withheld

pertains to the portion of an employee's income that an employer retains as a prepayment for taxes to the government.

FUTA

Federal Unemployment Tax Act, a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.