Question 74 of 75.

Dawson's Inc. paid the following expenses during 2018 (calendar year entity):

• Officer's compensation was $75,000, paid to Ms. Dawson who devotes 100% of her time to the business. All other salaries were associated with Cost of Goods Sold labor.
• The company purchased their office building for $125,000 on April 15, 2017. The company paid bank charges of $6,757 for the year, and interest expense of $4,718 (not limited).
• Deductible sales taxes totaled $21,000.
• During the year, Dawson's Inc. contributed $5,000 to various charitable organizations.

Other business deductions consist of:

• $12,000 for advertising.
• $4,000 insurance.
• $5,000 licenses.
• $1,500 legal and professional.
• $3,200 utilities.
• $1,000 office supplies.

What are the total deductions to be reported on Form 1120, line 27?

$137,662

$139,175

$142,380

$145,585

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