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:

Capitalism

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Colonizers

Individuals or groups who establish control over foreign lands and people, often exploiting, displacing, or exterminating the indigenous populations in the process.

Soviet Communism

A form of government and ideology based on the theories of Karl Marx and Vladimir Lenin that was practiced in the Soviet Union, characterized by state control of the economy and a one-party totalitarian regime.

George F. Kennan

An American diplomat and historian recognized for his influential role in establishing the U.S. policy of containment during the Cold War.