1. Which one of the following payments ismost likelyto be allowed afulldeduction on a current year return?

Group of answer choices

Done-Right Cabinets re-paints their customer showroom.

Ralph rewires his theater room in his personal residence.

ABC accounting firm pays for a business lunch with clients to discuss an upcoming audit.

Maria replaces the motor in the van that she uses in her flower delivery business.

1. During 2020, Jeff has the following startup costs for his new lawn-care business:

Employee Training & Orientation Costs: $5,000

Legal and Accounting fees: $8,000

Market Research and Surveys: $4,000

Jeff's business begins operations on January 1, 2021. Determine the amount that Jeff should deduct and when.

Group of answer choices

$5,000 in the 2020 tax year.

$5,800 in the 2020 tax year.

$5,800 in the 2021 tax year.

$17,000 in the 2021 tax year.

1. Whichoneof the following costs ismost likelyto be deductible?

Group of answer choices

Fines paid for dumping toxic waste into a City of Denver park.

Bribes to a city health inspector to ensure an "A" rating to a restaurant.

The telephone bill for the headquarters of an illegal stolen car parts organization.

Advertising costs for a Colorado marijuana dispensary.

1. Magnus Corporation has $120,000 of revenues for the year. They also have the following expenses during the year:

Cost of Goods Sold: $15,000

Business Meals Expense: $6,000

Speeding Tickets: $7,000

Salaries: $20,000

What is the amount of Magnus'Taxable Income[hint: Corporate taxable income= Gross Income minus Allowable Deductions]?

Group of answer choices

$72,000

$75,000

$79,000

$82,000