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Which of the following business expense deductions is most likely to be 2 points unreasonable in amount? Compensation paid to the taxpayer's spouse in excess

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Which of the following business expense deductions is most likely to be 2 points unreasonable in amount? Compensation paid to the taxpayer's spouse in excess of salary payments to other employees. Amounts paid to a subsidiary corporation for services where the amount is in excess of the cost of comparable services by competing corporations. Cost of a meal with a former client when there is no possibility of any future benefits from a relation with that client. All of the choices are likely to be unreasonable in amount. None of the choices are likely to be unreasonable in amount! Which of the following expenditures is most likely to be deductible for a * 2 points construction business? A fine for a zoning violation. A tax underpayment penalty. An "under the table" payment to a government representative to obtain a better price for raw materials. A contribution to the mayor's political campaign fund. A payment for emergency repairs of a sewage line. All taxpayers must account for taxable income using a calendar year. * 2 polnts True False

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