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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?
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