Which of the Following Items, If Any, Is Deductible

question 36

Multiple Choice

Which of the following items, if any, is deductible?

• A)Parking expenses incurred in connection with jury duty-taxpayer is a dentist.
• B)Substantiated gambling losses (not in excess of gambling winnings) from state lottery.
• C)Contributions to mayor's reelection campaign.
• D)Speeding ticket incurred while on business.
• E)Premiums paid on personal life insurance policy.

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Definitions:

Direct Labour Budget

A budget that forecasts the expense of direct labor needed to achieve manufacturing targets.

Labour Rate

The standard or actual cost paid per hour of labor, used in calculating the total cost of production or services.

Raw Materials

Materials that are used to make a product.

Budgeted Production

The planned quantity of goods or services that a company aims to produce over a certain period, often based on forecasted demand.