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Which of the following items is not deductible in calculating net business incom

ID: 2399005 • Letter: W

Question

Which of the following items is not deductible in calculating net business income for the current taxation year? (Canada)

An $11,000 legal fee paid for services rendered in conjunction with a new issue of the company’s common stock.

A $125,000 management bonus paid 125 days after the end of the corporation’s current taxation year.

An amount of $25,000 paid for planting large maple trees in various locations on the grounds of the company’s facilities.

A $10,000 contribution to a company pension fund.

A.

An $11,000 legal fee paid for services rendered in conjunction with a new issue of the company’s common stock.

B.

A $125,000 management bonus paid 125 days after the end of the corporation’s current taxation year.

C.

An amount of $25,000 paid for planting large maple trees in various locations on the grounds of the company’s facilities.

D.

A $10,000 contribution to a company pension fund.

Explanation / Answer

A- legal fees paid for services rendered in conjunction with a new issue of the company common stock is not the deductible expense

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