Question
For the following, indicate if the expenses are Fully deductible, Partially deductible, or Nondeductible for regular tax purposes on Reliants 20x1 federal income tax return.
For the following, indicate if the expenses are Fully deductible, Partially deductible, or Nondeductible for regular tax purposes on Reliants 20x1 federal income tax return. Selections F. Fully deductible for regular tax purposes on Reliants 20X1 Federal income tax return P. Partially deductible of regular tax purposes on Reliants 20X1 Federal income tax return N. Nondeductible for regular tax purposes on Reliants 20X1 Federal income tax return 1. Reliant purchased theater tickets for its out of town clients. The performances took place after Reliants substantial and bona fide business negotiations with its clients. ( ) 2. Reliant accrued advertising expenses to promote a new product line. Ten percents of the new product line remained in ending inventory. ( ) 3. Reliant incurred interest expense on a loan to purchase municipal bonds. ( ) 4. Reliant paid a penalty for the underpayment of 20x0 estimated taxes. ( ) 5. On December 9, 20x1, Reliants board of directors voted to pay a $500 bonus to each nonstick holder employee for 20x1. The bonuses were paid on February 3, 20x2. ( )
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