Gary, a Sole Proprietor, Incurs the Following Expenses in His

question 101

Multiple Choice

Gary, a sole proprietor, incurs the following expenses in his record store business. Gary can deduct the following as business expenses in the current year
I.$3,000 in legal fees to acquire a competing record store.
II.$500 to the local police chief to not write parking tickets to his customers whose time ran-out on parking meters in front of his store.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

French Canadians

People of French descent who live in Canada, particularly in the province of Quebec, known for maintaining a distinct French culture, language, and identity.

French and Indian War

The conflict between France and Britain in North America from 1754 to 1763, part of a series of global conflicts known as the Seven Years' War.

Royal Navy

The United Kingdom's naval warfare force, historically one of the most powerful in the world and a key player in establishing the British Empire.

Seven Years' War

A global conflict that took place between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, Central America, the West African coast, India, and the Philippines.