QUESTION 21

2. Apu Nahasapeemapetilon, CPA has AGI of $50,000 and he incurs the following expenses:
3. Expense
4. Amount
5. Business traveling expenses
6. $1,000
7. Business Related Meals
8. $2,000
9. Office supplies
10. $1,000
11. Professional association dues paid
12. $1,000
13. Commuting expenses
14. $1,000
15. Premiums paid on key man life insurance policy
16. $1,000
17. Meals while working late
18. $2,000
19. Total
20. $9,000
21. Assuming Apu is self-employed, how much of the above expenses can he deduct on his federal tax return?
24. A.$4,000
25. B.$5,000
26. C.$6,000
27. D.$7,000
28. E.$8,000