Which of the Following Expenses Is Deductible,but Subject to the 2

question 70

Multiple Choice

Which of the following expenses is deductible,but subject to the 2% limitation on Form 1040,Schedule A,Job Expenses and Most Other Miscellaneous Itemized Deductions?

• A)The cost of hauling tools to work in the trunk of a car.
• B)Appraisal fees on the sale of a personal residence.
• C)Uniforms for a UPS delivery person.
• D)A blue suit for an accountant.

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Definitions:

Cash Break-even

The point at which a business generates just enough revenue to cover its operating cash expenditures.

Contingency Planning

The process of preparing for potential future situations or emergencies, particularly those that might disrupt operations.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Conventional Capital Budgeting

A process of planning and evaluating large-scale investments and expenditures to optimize a company's capital expenditures and investments.