Which of the Following Business Expense Deductions Is Most Likely

question 75

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.All three situations involve suspicious payments to a related taxpayer or with personal benefits.

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Techniques or methods used to influence or alter how something is perceived by others, often used in marketing or creative contexts.

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