28. Determine how each of the following expenses would be deducted for tax purposes. If the expense is not deductible, explain why not.

a) Chander paid $500 in interest on a loan he used to purchase equipment for his retail business.

b) Peter paid $500 in interest on a loan he used to purchase 1000 shares of Pickled Pepper stock.

c) Portia paid $500 in interest on a loan she used to purchase her personal automobile.

d) Jordan's primary source of income is his wholesale warehousing business. During the current year, he paid $8000 in state income taxes.

e) Alphone is a profesional golfer who likes to race cars in his spare time. He spent $60000 on expenses related to racing cars during the current year.

f) Barry is an insurance agent. He bought a golf cart and had his insurance company logo put on the golf cart to attract customers while he played golf.

34. Hamid owns and lives in a duplex. He rents the other unit to an unrelated married couple for $850 per month. During the current year, he incurs the following expenses related to the duplex:

Mortgage interest $7500

Property taxes 1100

Utilities 1450

Repairs

Paint exterior of duplex $2200

Fix plumbing in rental unit 320

Shampoo carpet in both units 290

Fix dishwasher in Hamid's unit 120 $2930

Homeowner's association fee 480

Insurance 800

Special property tax assessment to pave sidewalks 3100

Depreciation (both units) 4200

How should Hamit treat the expenditures related to the duplex? Explain

37. Discus whether the folowing expenditures meet the ordinary,necessary and reasonable requirements.

a) Sadie owns 5 shares of Megaconglomerate stock. She spent $4000 to attend the annual shareholders' meeting.

b) Sam runs a successful medical practice. Because he has a substantial investment portfolio, he spent $3000 to attend a seminar on investing strategies.

c) Alana is a self employed tax attorney. She spent $3000 to attend the America Institute of Certified Public Accountants' annual conference on income tax developments.

d) Kevin owns a large ranching operation. He is deeply religious and feels it is important that his employees have access to religious counseling. He hired an ordained minister to live on the ranch and be available to counsel his emploees on any religious probems they might have.