Determine the amount that d net income for tax purposes

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Reference no: EM132220980

Question -

A) J was employed as a salesperson and earned a salary of $50,000 and commissions of $5,000 in the current year. He incurred the following expenses to earn his income: Car expense $2,000; Out-of-town travel expenses (excluding car & meals) $4,500; Client meals 500; Advertising 1,200. What is the maximum amount that J can deduct in a arriving at employment income for tax purposes?

B) In the current year D Inc. had the following expenses: $5,000 interest on a loan used to acquire equipment, $40,000 for scientific research and experimental development activity, and $80,000 for stock based compensation expense. The interest was accrued and paid in the following year. Determine the amount that D's net income for tax purposes will decrease in the current year due to these expenses.

Reference no: EM132220980

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