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Corps purchased theater tickets for its out of town clients. The performances took place after Corps substantial and bona fide business negotiations with its clients. Corps accrued advertising expenses to promote a new product line. The percent of the new product line remained in ending inventory. Corps incurred interest expense on a loan to purchase municipal bonds. Corps paid a penalty for the underpayment of prior year estimated federal income taxes. Corps board of directors voted to pay a $500 bonus to each nonstockholder employee for current year. The bonuses were paid on February 3, next year.

(I) For the following, indicate if the expenses are fully deductible, partially deductible, or nondeductible for regular tax purposes on federal income tax return. Selections F. Fully deductible for regular tax purposes. P. Partially deductible for regular tax purposes. N. Nondeductible for regular tax purposes. (F) (P) (N) Corp's purchased theater tickets for its out of town clients. The performances took place after Corp's substantial and bona 13 O fide business negotiations with its clients. Corp's accrued advertising expenses to promote a new product line. The percent of the new product line remained in ending inventory Corp's incurred interest expense on a loan to purchase 15 municipal bonds. Corp's paid a penalty for the underpayment of prior year estimated federal income taxes. Corp's board of directors voted to pay a $500 bonus to each nonstockholder employee for current year. The bonuses were paid on February 3, next year. 14 16 17 (I) For the following, indicate if the expenses are fully deductible, partially deductible, or nondeductible for regular tax purposes on federal income tax return. Selections F. Fully deductible for regular tax purposes. P. Partially deductible for regular tax purposes. N. Nondeductible for regular tax purposes. (F) (P) (N) Corp's purchased theater tickets for its out of town clients. The performances took place after Corp's substantial and bona 13 O fide business negotiations with its clients. Corp's accrued advertising expenses to promote a new product line. The percent of the new product line remained in ending inventory Corp's incurred interest expense on a loan to purchase 15 municipal bonds. Corp's paid a penalty for the underpayment of prior year estimated federal income taxes. Corp's board of directors voted to pay a $500 bonus to each nonstockholder employee for current year. The bonuses were paid on February 3, next year. 14 16 17