1. Assume a Tax Payer paid 250,000 interest expense on an business loan in 2020 and receive net interest income of 48,000 from a deposit. How much is the deductible interest expense? a. 190,000 b. 230,000 c. 250,000 2.Salaries and wages of administrative employees are a. deductible to the extent of taxable compensation on the part of the employees b. deductible in full c. deductible subject to limitations 3. B Inc, contributed 250,000 for its pension fund inclusive of 100,000 current service cost. How much is the deductible pension expense? a. 100,000 b. 125,000 c. 115,000 d. 250,00p 4. A tax payer with net sales of 2,000,000 and cost sales of 1,800,000 incurred 8,500 entertainment, amusement and recreation. Compute the allowable deduction. a. 8,500 b.0 c 20,000 d. 10,000 5. An individual income tax payer reported the following: Capital Loss- 50,000; current year Capital Gain- 120,000; current year Net Capital Loss- 75,000; last year Net Income- 250,000; last year How much is the deductible capital loss for the current year? a. 250,000 b. 50,000 c.120,000 d. 125,000