Question
TAX 2021 PLEASE! Describe the book/tax difference resulting from each of the following transactions: a. Firm A spent $430 on a business dinner attended by
TAX 2021 PLEASE!
Describe the book/tax difference resulting from each of the following transactions:
a. Firm A spent $430 on a business dinner attended by the firms vice president and a potential client.
b. Firm B borrowed $50,000 and invested the loan proceeds in tax-exempt City of Los Angeles bonds. This year, Firm B paid $2,800 interest on the loan and earned $3,500 interest on the bonds.
c. Firm C sent its president and several other key employees to Washington, D.C., to lobby a group of senators to enact legislation that would be extremely beneficial for the firms business. The cost of this trip was $7,400. While in the capital city, the president attended a $10,000 a plate fundraising dinner sponsored by one senators reelection committee.
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