Question

Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent $43,500 Bribes 65,250 Travel expenses 4,350 Utilities 26,100 Wages 274,250 Payroll taxes 21,750 Property insurance 2,175 Illegal kickbacks 39,150 What are Vella's total deductible expenses for tax purposes

Answer 1

Answer:

$372,125

Explanation:

Calculation to determine Vella's total deductible expenses for tax purposes

Rent $43,500

AddTravel expenses 4,350

Add Utilities 26,100

Add Wages 274,250

Add Payroll taxes 21,750

Add Property insurance 2,175

Total deductible expenses $372,125

Therefore total deductible expenses for tax purposes will be $372,125