1. Cost of services of banks excludes the following except:
   1. Interest expense on depositors accounts
   2. Loss on sale of assets
   3. Bad debt expense
   4. Sales returns

2. Bad debts expenses include:
   1. Securities becoming worthless
   2. Uncollectible debts due to the taxpayer
   3. Neither a nor b
   4. Both a and b

3. Which of the following items are entertainment, amusement and recreation expenses can be claimed as a deduction?
   1. Entertainment expenses in the excess of the limits of the law
   2. Entertainment expenses for potential and existing clients
   3. Entertainment expenses not receipted in the name of the taxpayer
   4. Entertainment expenses paid to officials of the government

4. A taxpayer paid for research and development expenses that are not chargeable to capital account. The taxpayer wished to amortize the same over its expected period of benefits. If the R&D is expected to benefit the taxpayer for 6 years, what is the correct amortization period of R&D expenses?
   1. 50 months
   2. 36 months
   3. 72 months
   4. 24 months

5. Which can claim full deduction for the loss of securities becoming worthless?
   1. Business owners
   2. Security dealers
   3. Non-security dealers
   4. Neither a nor c
   5. Both a and c