Question
43. LO6 What is the proper tax treatment for each of the following expenses? a. Bernilyn, a commercial real estate broker, is late for a
43. LO6 What is the proper tax treatment for each of the following expenses? a. Bernilyn, a commercial real estate broker, is late for a meeting with her boss when she is stopped and ticketed $150 for speeding. She is using a company car when she receives the ticket. b. Russell is an employee of the Dinsmore Corporation, a small plumbing repair business. He learns that his boss Simon, the sole owner of the business, was arrested 20 years ago for burglary. Because Simon needs access to homes and businesses to do his work, he pays Russell $100 per month for his silence. c. Anastasia owns a travel agency. The daughter of the president of her largest corporate client is getting married, and Anastasia insists on paying for her bridal shower at a local restaurant. d. The San Martin Construction Company pays local union officers $20,000 to ensure that San Martin continues to receive construction contracts. The payments are standard practice in the area.
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