Which of the Following Expenditures or Losses Incurred in the Context

question 72

Multiple Choice

Which of the following expenditures or losses incurred in the context of a trade or business activity is deductible at the time it is incurred?

• A)Aaron owns a local restaurant. He pays the local health inspector a fee of $125 per week, as provided by city regulation.
• B)Beth owns a local delivery company and pays $750 in parking fines during the year with respect to her delivery vehicles. These fines were unavoidable in the context of her business activity.
• C)Brad hires the son of the police chief as the night watchman at his business. The son is paid at the same weekly rate as other night watchmen in the area, but he does not show up for work on a regular basis.
• D)Dotty owns a local nightclub that features live music. She pays $4,600 to purchase a full page ad in the local newspaper urging citizens to vote against a noise ordinance in the next election that will force her out of business if passed.

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Definitions:

Negotiates

The process by which parties come together to discuss, bargain, and reach a mutually acceptable agreement.

Wage Differentials

The variations in wage rates due to factors like occupation, location, industry, and individual skills and experience.

Discriminatory Bias

Prejudice resulting in unfair treatment of individuals or groups based on characteristics such as race, gender, or age.

Productivity

The efficiency with which input resources are converted into outputs, often measured as the amount of output per unit of input.