Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction.

Expenditure

Amount Salaries and wages to employees...................................................... $400,000

Purchase of new office building ....................250,000

Payment of illegal parking fines of President ...................................................... 1,400

Payment of wedding expenses for President’s daughter's wedding ..... 16, 000

Entertainment expenses related to company business....................................... 25,000

Interest on money borrowed to buy tax-exempt securities............ 9,000

Total expenditures ........................................................................................... $700,400