Question

Jimmy owns a trucking business. During the current year he incurred the following:Gasoline and Oil $ 100,000Maintenance $ 15,000Fines for Speeding and Illegal parking $ 8,000Bribes to Government Inspection Officials $ 21,000What is the total amount of deductible expenses?A) $115,000B) $123,000C) $108,000D) $144,000

Answer 1

Answer:

A) $115,000

Explanation:

The fines and penalties are never deducted. They are generated from a violation of the law thus, not deductible.

Jimmy won't put in his tax papers that he commit a felony.

Jimmy will deduct the gasoline and oil used and the maintenance cost associate with the truck

Gasoline and Oil  100,000

Maintenance          15,000  

Total expenses     115,000