Corporations are allowed to deduct specific expenses forincome tax purposes. Sev
ID: 2661673 • Letter: C
Question
Corporations are allowed to deduct specific expenses forincome tax purposes. Several of these expenditures are deductiblebut they are not cash expenses. Which of the following is not acash expenditure but is still deductible for income taxpurposes?a. Marketing expenses. b. Payroll tax payments. c. Wages and salaries. d. Depreciation expense. Corporations are allowed to deduct specific expenses forincome tax purposes. Several of these expenditures are deductiblebut they are not cash expenses. Which of the following is not acash expenditure but is still deductible for income taxpurposes?
a. Marketing expenses. b. Payroll tax payments. c. Wages and salaries. d. Depreciation expense.
Explanation / Answer
D. Depreciation expense. Depreciation involves no cash and is still deductible for taxpurpose.