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Business, 23.10.2019 05:00 kamkam1713
Jones operates an upscale restaurant and he pays experienced cooks $35,000 per year. this year he hired his son as an apprentice cook. jones agreed to pay his son $40,000 per year. which of the following is a true statement about this transaction? a. jones will be allowed to deduct $40,000 only if his son eventually develops into an expert cook. b. jones will be allowed to accrue $40,000 only if he pays his son in cash. c. jones will be allowed to deduct $35,000 as compensation and another $5,000 can be deducted as an employee gift. d. jones can only deduct $20,000 because an apprentice cook is only worth half as much as an experienced cook. e. none of these-jones can only deduct reasonable compensation.
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Jones operates an upscale restaurant and he pays experienced cooks $35,000 per year. this year he hi...
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