Question
Lou incurred the following business expenses during the year: Penalty for breach of business contract $3,200 State sales tax penalty for late remittance $2,500 Rent
Lou incurred the following business expenses during the year:
Penalty for breach of business contract $3,200
State sales tax penalty for late remittance $2,500
Rent expense $6,000
Office supplies $450
Early withdrawal penalty on investment account at a savings and loan$185
What are Lou's allowable current-year deductions?
A. $6,635
B. $9,835
C. $12,150
D. $12,335
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
8th edition
1259917061, 978-1259917066
