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29. Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction. Expenditure Amount Salaries and wages to employees …………………………….. $400,000 Purchase of new office building . 250,000 Payment of illegal parking fines of President ………………………………. 1,400 Payment of wedding expenses for President’s daughter’s wedding 16,000 Entertainment expenses related to company business ……………… 25,000 Interest on money borrowed to buy tax-exempt securities …. 9,000 Total expenditures ……………………… $700,400
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