Explain why each of the following expenditures is or is not deductible: a. Lumbar, Inc., pays…

Explain why each of the following expenditures is or is not
deductible:

a. Lumbar, Inc., pays $12,000 as its share of its employees’
Social Security tax. The $12,000 is deductible.

b. Leroy pays a cleaning service $250 per month to clean his
real estate office. The $250 is deductible.

c. Janice pays a cleaning service $75 per month to clean her
personal residence. The $75 is not deductible.

d. Leyh Corporation purchases land to use as a parking lot
for $35,000. The $35,000 is not deductible.

e. Martin spends $50 per month on gasoline for the car he
uses to drive to his job as a disc
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Explain why each of the following expenditures is or is not
deductible:

a. Lumbar, Inc., pays $12,000 as its share of its employees’
Social Security tax. The $12,000 is deductible.

b. Leroy pays a cleaning service $250 per month to clean his
real estate office. The $250 is deductible.

c. Janice pays a cleaning service $75 per month to clean her
personal residence. The $75 is not deductible.

d. Leyh Corporation purchases land to use as a parking lot
for $35,000. The $35,000 is not deductible.

e. Martin spends $50 per month on gasoline for the car he
uses to drive to his job as a disc jockey. The $50 is not deductible.

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