Which of the Following Payments Are Deductible

question 164

Multiple Choice

Which of the following payments are deductible?
I.Wilcox pays $1,000 to run an add in the program of the state Independent Party convention
II.Wilcox is in the construction business.In January,he sends his chief financial officer to Washington,D.C. ,to monitor current legislation affecting the real estate industry.Expenses totaled $2,100.
III.In March,Wilcox personally travels to Washington,D.C. ,to testify before the banking subcommittee on the effects of proposed legislation on the construction industry.Expenses totaled $2,300.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Only statement III is correct.
• D)Statements II and III are correct.
• E)Statements I and II are correct.

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Definitions:

Limited Partners

Investors in a partnership who are not involved in the day-to-day operations of the business and whose liability is limited to the amount of their investment.

Partnership Matters

Issues or affairs that concern the operation and management of a partnership, including agreements, responsibilities, and profit sharing.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Limited Rights

Rights that are restricted by terms or extent, often used in the context of intellectual property or contractual agreements.