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J Inc. incurred (and paid) the following expenses in the current year: $6,000 for advertising in...

J Inc. incurred (and paid) the following expenses in the current year: $6,000 for advertising in a foreign trade magazine that is distributed to customers in Canada, $7,000 paid to a registered charity, $4,000 annual dues to a golf club used by executives to entertain customers, and $2,000 to sponsor a local softball team. Determine the amount deductible in computing J’s business income for tax purposes for the current year.

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Answer #1

Amount deductible in computing J’s business income for tax purposes for the current year:

advertising in a foreign trade magazine that is distributed to customers in Canada = $6,000

annual dues to a golf club used by executives to entertain customers = $4,000

Total = $10,000

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