Which of the Following Cannot Be Deducted as a §

question 33

Multiple Choice

Which of the following cannot be deducted as a § 162 business expense?

• A)Expenses of investing in stocks and bonds.
• B)Charitable contributions made by a sole proprietorship.
• C)Fines and penalties.
• D)Only a.and c.cannot.
• E)a. ,b. ,and c.cannot.

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Definitions:

Flotation Costs

The financial outlay a firm encounters when releasing new securities, involving charges for legal matters, underwriting, and registering the issuance.

Issuance

The act of making something available or distributing it officially, commonly used in the context of financial securities being issued to the public.

New Securities

Financial instruments recently issued by a corporation or government entity to raise funds from investors.

Cost of Equity

The theoretical payment a company offers to its shareholders as compensation for the risk they assume by investing their funds.