D.e.d.u.c.t.i.o.n.s. .f.r.o.m. .G.r.o.s.s. .I.n.c.o.m.e. N.o.t.e.:. .I.n.c.o.m.e. .t.a.x.a.t.i.o.n. .-. .P.h.i.l.i.p.p.i.n.e.s. .b.a.s.e.d A.r.e. .a.l.l. .o.r.d.i.n.a.r.y. .e.x.p.e.n.s.e.s. .n.e.c.e.s.s.a.r.y.?. .W.h.e.n. .i.s. .s.a.l.a.r.y. .e.x.p.e.n.s.e .d.e.d.u.c.t.i.b.l.e.? I.s. .c.o.m.p.e.n.s.a.t.i.o.n.. f.o..r .i.n.j.u.r.i.e.s. .a.n.d. .p.e.n.s.i.o.n.s. d.e.d.u.c.t.i.b.l.e.. f.r.o.m. .b.u.s.i.n.e.s.s. .i.n.c.o.m.e. .o.f. .p.a.y.o.r.? W.h.a.t. .a.r.e. .t.h.e. ..t.a.x. .t.r.e.a.t.m.e.n.t.s. .i.f. .m.a.t.e.r.i.a.l.s. .a.n.d. .s.u.p.p.l.i.e.s. .a.r.e. .u.s.e.d. .d.i.r.e.c.t.l.y. .a.n.d. .i.n.d.i.r.e.c.t.l.y. .i.n. .p.r.o.d.u.c.i.n.g. .p.r.o.d.u.c.t.s.? S.t.a.t.e. .t.h.e. .r.u.l.e.s. .o.n. .t.h.e. .d.e.d.u.c.t.i.b.i.l.i.t.y. .o.f. .r.e.n..t .e.x.p.e.n.s.e.s. .a..re. .p.a.i.d. .u.n.d.e.r. .a.c.c.r.u.a.l. .a.n.d. .u.n.d.e.r. .c.a.s.h. .m.e.t.h.o.d. S.t.a.t.e. .t.h.e. .c.e.i.l.i.n.g.s. .f.o.r. .d.e.d.u.c.t.i.b.l.e. .r.e.p.r.e.s.e.n.t.a.t.i.o.n. .e.x.p.e.n.s.e.s.?. .E.x.p.l.a.i.n. .t.h.e. .t.a.x. .a.r.b.i.t.r.a.g.e. .o.n. .i.n.t.e.r.e.s.t. .e.x.p.e.n.s.e. .s.u.b.j.e.c.t. .t.o. .l.i.m.i.t
D.e.d.u.c.t.i.o.n.s. .f.r.o.m. .G.r.o.s.s. .I.n.c.o.m.e. N.o.t.e.:. .I.n.c.o.m.e. .t.a.x.a.t.i.o.n. .-. .P.h.i.l.i.p.p.i.n.e.s. .b.a.s.e.d A.r.e. .a.l.l. .o.r.d.i.n.a.r.y. .e.x.p.e.n.s.e.s. .n.e.c.e.s.s.a.r.y.?. .W.h.e.n. .i.s. .s.a.l.a.r.y. .e.x.p.e.n.s.e .d.e.d.u.c.t.i.b.l.e.? I.s. .c.o.m.p.e.n.s.a.t.i.o.n.. f.o..r .i.n.j.u.r.i.e.s. .a.n.d. .p.e.n.s.i.o.n.s. d.e.d.u.c.t.i.b.l.e.. f.r.o.m. .b.u.s.i.n.e.s.s. .i.n.c.o.m.e. .o.f. .p.a.y.o.r.? W.h.a.t. .a.r.e. .t.h.e. ..t.a.x. .t.r.e.a.t.m.e.n.t.s. .i.f. .m.a.t.e.r.i.a.l.s. .a.n.d. .s.u.p.p.l.i.e.s. .a.r.e. .u.s.e.d. .d.i.r.e.c.t.l.y. .a.n.d. .i.n.d.i.r.e.c.t.l.y. .i.n. .p.r.o.d.u.c.i.n.g. .p.r.o.d.u.c.t.s.? S.t.a.t.e. .t.h.e. .r.u.l.e.s. .o.n. .t.h.e. .d.e.d.u.c.t.i.b.i.l.i.t.y. .o.f. .r.e.n..t .e.x.p.e.n.s.e.s. .a..re. .p.a.i.d. .u.n.d.e.r. .a.c.c.r.u.a.l. .a.n.d. .u.n.d.e.r. .c.a.s.h. .m.e.t.h.o.d. S.t.a.t.e. .t.h.e. .c.e.i.l.i.n.g.s. .f.o.r. .d.e.d.u.c.t.i.b.l.e. .r.e.p.r.e.s.e.n.t.a.t.i.o.n. .e.x.p.e.n.s.e.s.?. .E.x.p.l.a.i.n. .t.h.e. .t.a.x. .a.r.b.i.t.r.a.g.e. .o.n. .i.n.t.e.r.e.s.t. .e.x.p.e.n.s.e. .s.u.b.j.e.c.t. .t.o. .l.i.m.i.t
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
D.e.d.u.c.t.i.o.n.s. .f.r.o.m. .G.r.o.s.s. .I.n.c.o.m.e.
N.o.t.e.:. .I.n.c.o.m.e. .
- A.r.e. .a.l.l. .o.r.d.i.n.a.r.y. .e.x.p.e.n.s.e.s. .n.e.c.e.s.s.a.r.y.?. .W.h.e.n. .i.s. .s.a.l.a.r.y. .e.x.p.e.n.s.e .d.e.d.u.c.t.i.b.l.e.?
- I.s. .c.o.m.p.e.n.s.a.t.i.o.n.. f.o..r .i.n.j.u.r.i.e.s. .a.n.d. .p.e.n.s.i.o.n.s. d.e.d.u.c.t.i.b.l.e.. f.r.o.m. .b.u.s.i.n.e.s.s. .i.n.c.o.m.e. .o.f. .p.a.y.o.r.?
- W.h.a.t. .a.r.e. .t.h.e. ..t.a.x. .t.r.e.a.t.m.e.n.t.s. .i.f. .m.a.t.e.r.i.a.l.s. .a.n.d. .s.u.p.p.l.i.e.s. .a.r.e. .u.s.e.d. .d.i.r.e.c.t.l.y. .a.n.d. .i.n.d.i.r.e.c.t.l.y. .i.n. .p.r.o.d.u.c.i.n.g. .p.r.o.d.u.c.t.s.?
- S.t.a.t.e. .t.h.e. .r.u.l.e.s. .o.n. .t.h.e. .d.e.d.u.c.t.i.b.i.l.i.t.y. .o.f. .r.e.n..t .e.x.p.e.n.s.e.s. .a..re. .p.a.i.d. .u.n.d.e.r. .a.c.c.r.u.a.l. .a.n.d. .u.n.d.e.r. .c.a.s.h. .m.e.t.h.o.d.
- S.t.a.t.e. .t.h.e. .c.e.i.l.i.n.g.s. .f.o.r. .d.e.d.u.c.t.i.b.l.e. .r.e.p.r.e.s.e.n.t.a.t.i.o.n. .e.x.p.e.n.s.e.s.?. .E.x.p.l.a.i.n. .t.h.e. .t.a.x. .a.r.b.i.t.r.a.g.e. .o.n. .i.n.t.e.r.e.s.t. .e.x.p.e.n.s.e. .s.u.b.j.e.c.t. .t.o. .l.i.m.i.t
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