Reference no: EM131760605
1. PAZ Corporation incurred the following expenses during the year:
Federal (EPA) fine paid for violation of air quality laws....$50,000
Brides paid to foreign officials to approve foreign construction project.....$200,000
Kickbacks paid to local police....$25,000
Legal Fees incurred in contesting EPA Fine....$250,000
Court Costs incurred in contesting EPA Fine...$1,000
What is the amount of expenses that PAZ Corporation can deduct for the tax year?
2. QT Corporation incurred the following politically related expenses:
Payments to state lobbyists to secure passage of favorable legislation...$550,000
Political Contributions...$250,000
Political Dinner (Table Purchased)....$10,000
Expenses incurred by QT President to appear before local county board to discuss proposed legislation that will affect QT....$2,000
What is the amount of expense that QT Corporation can deduct for tax purposes?