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School
California State University, Northridge **We aren't endorsed by this school
Course
ACCT 440
Subject
Accounting
Date
Oct 19, 2023
Pages
1
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' 1 3 . } | Hide Explanation Jason is a cash basis, self-employed attorney. Which of the following expenses are deductible on his Schedule C? A. Mrs. Jones was billed in February of the prior year, but has never paid. Jason considers this to be bad debt. Jason made a $1,000 charitable contribution to the Boys and Girls Club. B. C. Jason paid country club dues totaling $4,000 for the year. Jason meets potential and current clients at the country club. D. Jason paid $35,000 in wages to his part-time assistant. Explanation X Choice "A" is incorrect. Because Jason is a cash basis taxpayer, he has not reported the income from Mrs. Jones. Therefore, the fact that she hasn't paid him does not create a deductible expense for Jason. Choice "B" is incorrect. Charitable contributions are deducted on Schedule A as an itemized deduction. Choice "C" is incorrect. Country club dues are not deductible business expenses. Choice "D" is correct. Salaries and wages paid to employees are deductible business expenses on Schedule C of Form 1040.
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