QUESTION NO 7:

A business is allowed to deduct many types of expenses, including wages and supplemental wages. Supplemental wages are compensation paid in addition to an employees regular wages. These do not include payments for which of the following (best option)?

a) Accumulated sick leave. b) Non-deductible moving expenses. c) Vacation pay (vacation time taken). d) Travel reimbursements paid to the federal government (per diem rate).

QUESTION NO 9:

Gina is a massage therapist, and due to the COVID-19 pandemic, she operated her business out of her home. She has designated one room (200 sq. ft.) of her 1,000 sq. ft. home to be used exclusively and regularly for her business activities. She had the following home expenses during the year: Mortgage Interest $2,500 Real Estate Tax $ 700 Electricity $1,200 Water/Sewer $ 460 What is the correct home office deduction Gina is able to deduct on her return (Schedule C)?

a) $1,000 b) $4,860 c) $ 972 d) $1,500