Jimmy owns a trucking business.During the current year he incurred the following: The fines for speeding were a necessary cost because missing deadlines would cause lost business and are ordinary in the industry.What is the total amount of deductible expenses?
A)$115,000
B)$123,000
C)$108,000
D)$144,000

Question

Jimmy owns a trucking business.During the current year he incurred the following:  The fines for speeding were a necessary cost because missing deadlines would cause lost business and are ordinary in the industry.What is the total amount of deductible expenses?
A)$115,000 
B)$123,000 
C)$108,000 
D)$144,000

Quizplus · Accepted Answer

A)Bribes and fines are not deductible.The gasoline and maintenance costs are allowed.$100,000 + $15,000 = $115,000.

Jimmy Owns a Trucking Business