Please show work and answer both questions 30. Printer Company pays a $25,000 an

Question

Please show work and answer both questions

30. Printer Company pays a $25,000 annual membership fee to a trade association for paper wholesalers. The trade association estimates that 60% of its dues are
allocated to lobbying activities. a. What are Printer’s total deductible expenses for tax purposes? b. Assume the same facts as above, except that the $25,000 was incurred for in-house lobbying expenses. What are Printer’s total deductible expenses for tax purposes?

31. 3 Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2018. Stanford incurred the following expenses:
Total investigation costs related to the restaurant 28,000

Total investigation costs related to the bakery 51,000
What is the maximum amount Stanford can deduct in 2018 for investigation expenses.

Explanation / Answer

2)

1)Printer’s total deductible expenses for tax purposes = $25000 x (1-60%) $10,000.00 Deductible expenses are applies on Pro-Rata portion on dues of trade association allocated to lobbying activities. 2) For In-house lobbying expenses total deductible expenses for tax purposes = $0.00 This is one of the exception rule of disallowing lobbying activities when it is provided for in house lobbying expenses.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---