Which of the Following Business Expense Deductions Is Most Likely

question 9

Multiple Choice

Which of the following business expense deductions is most likely to be unreasonable in amount?

• A) Compensation paid to the taxpayer's spouse in excess of salary payments to other employees.
• B) Amounts paid to a subsidiary corporation for services where the amount is in excess of the cost of comparable services by competing corporations.
• C) Cost of entertaining a former client when there is no possibility of any future benefits from a relation with that client.
• D)All of these are likely to be unreasonable in amount.
• E)None of these

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Definitions:

Remote Tracking

A process of monitoring the activity or location of a device or individual from a distance, using technology such as GPS or software tools.

Cell Phone

A portable telephone that can make and receive calls over a radio frequency link while the user is moving within a telephone service area.

Authentication

The process of verifying the identity of a user or system, often through passwords, biometrics, or cryptographic keys.

Data Mining

The process of analyzing large sets of data to discover patterns, trends, and information useful for decision-making and prediction.