Please show work and answer both questions30. Printer Company pays a $25,000 annual membership...

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Accounting

Please show work and answer both questions
30. Printer Company pays a $25,000 annual membership fee to atrade association for paper wholesalers. The trade associationestimates that 60% of its dues are
allocated to lobbying activities. a. What are Printer’s totaldeductible expenses for tax purposes? b. Assume the same facts asabove, except that the $25,000 was incurred for in-house lobbyingexpenses. What are Printer’s total deductible expenses for taxpurposes?
31. 3 Stanford owns and operates two dry cleaning businesses. Hetravels to Boston to discuss acquiring a restaurant. Later in themonth, he travels to New York to discuss acquiring a bakery.Stanford does not acquire the restaurant but does purchase thebakery on November 1, 2018. Stanford incurred the followingexpenses:
Total investigation costs related to the restaurant 28,000
Total investigation costs related to the bakery 51,000
What is the maximum amount Stanford can deduct in 2018 forinvestigation expenses.

Answer & Explanation Solved by verified expert

3.8 Ratings (732 Votes)

1Printers total deductible expenses for tax purposes 25000 x 160 1000000 Deductible expenses are applies on ProRata portion on dues of trade association allocated to lobbying activities 2 For Inhouse lobbying expenses total deductible expenses for tax See Answer

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In: AccountingPlease show work and answer both questions30. Printer Company pays a $25,000 annual membership fee...Please show work and answer both questions30. Printer Company pays a $25,000 annual membership fee to atrade association for paper wholesalers. The trade associationestimates that 60% of its dues areallocated to lobbying activities. a. What are Printer’s totaldeductible expenses for tax purposes? b. Assume the same facts asabove, except that the $25,000 was incurred for in-house lobbyingexpenses. What are Printer’s total deductible expenses for taxpurposes?31. 3 Stanford owns and operates two dry cleaning businesses. Hetravels to Boston to discuss acquiring a restaurant. Later in themonth, he travels to New York to discuss acquiring a bakery.Stanford does not acquire the restaurant but does purchase thebakery on November 1, 2018. Stanford incurred the followingexpenses:Total investigation costs related to the restaurant 28,000Total investigation costs related to the bakery 51,000What is the maximum amount Stanford can deduct in 2018 forinvestigation expenses.