Deductions for a Corporation:
Select the correct answer from the following:
A. Fully deductible on the current year's tax return
B. Partially deductible , subject to limitations, on the current year's tax return
C. Not deductible on the current years' tax return
1. The net capital loss of $2,000
2. Advertising expenses
3. Estimated federal tax payments.
4. Payment of penalty for delinquent taxes.
5. Dividends paid to shareholder.
6. Unreasonable compensation to the company's president
and majority shareholder.
7. Depreciation calculated under MACRS.
8. Group life insurance premiums paid for insurance policies on employees in
which the which the employees are the direct beneficiaries.
9. Charitable Contributions of cash
10. Charitable contribution of inventory to Feed the Children.
11. Bonuses paid to nonshareholder employees
12. Interest expense on a loan to purchase investments.
13. For the current year, the Board of Directors authorized a charitable
contribution of $12,000 to be paid on March 1 of the next year.
14. Life insurance premiums paid for insurance policies on the president of the
corporation in which the corporation is the direct beneficiary.
15. Expenses to lease a luxury skybox during football season when
bona fide business discussion proceeds and follows the game.