Do you agree with Timmy that his strategy is wonderful? Why or why not?
Timmy knows that Tammy, his boss at ABC Corp., desperately wants to bring the department in under-budget for the year so that she can earn herself a nice year-end bonus. And since Timmy is desperate to butter Tammy up and become her favorite employee, his brain churns out the following logic:
Even though I used my own credit card to take that big group of customers out to eat and to the ball game last night, and even though the total cost was $1,200, I’ll not submit an expense report and so not get reimbursed, which will make Tammy very happy and she’ll like me very much! Oh, and since I file a Schedule C for my side business (tax return prep), I’ll just deduct the $1,200 there! Wonderful strategy!
Do you agree with Timmy that his strategy is wonderful? Why or why not?
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