Drew incurs the following expenses in his grocery store business. Drew can deduct the following as business expenses in the current year
I.$3,750 for advertising on the web.
II.$2,000 of interest expense related to the purchase of a new delivery truck.

Question

Drew incurs the following expenses in his grocery store business. Drew can deduct the following as business expenses in the current year
I.$3,750 for advertising on the web.
II.$2,000 of interest expense related to the purchase of a new delivery truck.
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Quizplus · Accepted Answer

Both statements are correct. Drew can deduct the $3,750 advertising expense as a business expense for the current year. He can also deduct the $2,000 interest expense on the loan he took out to finance the purchase of his new delivery truck.

Drew Incurs the Following Expenses in His Grocery Store Business