Which of the Following Items,if Any,is Deductible

question 8

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)Contributions to mayor's reelection campaign.
• C)Substantiated gambling losses (not in excess of gambling winnings)incurred on a vacation to Reno.
• D)Speeding ticket incurred while on business.
• E)Premiums paid on personal life insurance policy.

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Definitions:

Minimizing Costs

Minimizing costs involves finding the most efficient way to operate that lowers expenses without sacrificing the quality or quantity of output.

Rental Rate

The price paid for the temporary use of a good, service, or property, typically expressed as a fee per time period.

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of output or quality.

Normal Rate Of Return

A rate of return on capital that is just sufficient to keep owners and investors satisfied. For relatively risk-free firms, it should be nearly the same as the interest rate on risk-free government bonds.