please answer 1-3

You are examining the audit work papers of a client, Sunrise Manufacturing. In preparation of their 2019 tax return. The audit work papers provide all the detail for each of the accounts that are provided on the financial statements. For example, all the detail for the accounts receivable account is contained in the audit work papers so that you know exactly what makes up the number for that account. As you are examining the Seling, General and Administrative (SG&A) account, you notice several different expenses that may or may not be deductible. Of the following expenses that you notice, which will give you the greatest uncertainty about its deductibility or partial deductibility? This means you must ask the client about the nature of the expense to determine if it's deductible or not. Multiple Choice A fine paid to the State of California in the amount of $23,000 A meal expense for $250 in which the CEO of Sunrise and an official from the City of Sacramento were present A life insurance prmium paid to MetLife in the amount of $1,900 All of the above expenses are clearly deductible or not deductible, There is no uncertainty with any of the above expenses. You have a prospective client who is in the product development stage of an innovative new product. If the market study for this product is promising, then your client will begin the business. Of course, If the market study is not promising, then the business will not begin. The cost of the market study as well as all the other start up costs totaled $53,000 to date. There will be no more start up costs incurred outside of the $53,000. If your prospective client begins the business, it will occur in September, 2021. Assuming your client will operate as a calendar year entity, what would be the total amortization (including immediate expensing) for 2021? Multiple Choice $2,000 $3,133 $5,000 None of the above Help Save & Exit Submit Your client, Banner Hydraulics, has asked you to prepare their 2019 tax return. The Chief Financial Officer (CFO) of Banner tells you the company wants to minimize the federal Income tax due for 2019. The CFO of Banner also states that the Section 179 deduction should be maximized in 2019. Banner acquires and places the following assets into service in 2019: software with a 3 year class life and a cost of $400,000; flatbed truck with a 5 year class life and a cost of $32,000, machine with a 5 year class life with a cost of $625,000; and furniture with a 7 year class life and a cost of $223,000. The total cost of all qualified assets placed into service is $1,200,000The flatbed truck is NOT subject to Section 280F and disregard bonus depreciation for this question. How should you use the Section 179 deduction? 3:36 Multiple Choice Software for $400,000; Flatbed Truck for $32,000; and Machine for $588,000 Furniture for $223,000 Machine for $625,000, and Software for $182.000 Software for $400,000; Flatbed Truck for $32,000 Furniture for $223,000, and Machine for $355.000 None of the above