13. Acme Corporation had the following expenses:

1. 1,000 pads of paper embossed with the company logo to hand out at

the Big Time Convention

$ 750

2. Display racks to use at the convention center

$ 200

3. An all-expense vacation for Susies 25 years of service award

$2,500

4. A golden cone to recognize Waynes on the job safety record

$ 300

Acme has a qualified plan for the job awards. Calculate Acmes total deductions

for the above expenses.

14. Donald rents out his vacation home for 9 months and lives in his vacation home for the

remainder of the year. His gross rental income for 2013 is $7,200. The expenses

attributable to the vacation home for the entire year are as follows:

Real estate taxes

$2,000

Interest on mortgage loan

$4,000

Utilities

$1,200

Repairs/maintenance

$ 600

Depreciation

$3,500

What amount would Donald report as net income or loss from the rental of the vacation

home?