Question
Judy is a self-employed musician who performs for a variety of events. This year Judy was fined $315 by the city for violating the city's
Judy is a self-employed musician who performs for a variety of events. This year Judy was fined $315 by the city for violating the city's noise ordinance with a relatively loud performance. As a consequence, Judy contributed $870 to a campaign committee formed to recall the city's mayor. Judy normally hires three part-time employees to help her schedule events and transport equipment. Judy paid a total of $34,300 to her employees through June of this year. In June Judy fired her part-time employees and hired her husband to replace them. However, Judy paid him $53,700 rather than $34,300. Judy is on the cash method and calendar year, and she wants to know what amount of these expenditures is deductible as business expenses.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started