All of the following are deductible business expenses except: a. depreciation on business items expected to last longer than one year. b. monthly expenses for a cell phone used exclusively for business purposes. c. the taxpayer uses another phone as their primary phone. d. dress clothing purchased and worn by the taxpayer to maintain a professional appearance. e. protective clothing used in a taxpayer's line of work

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow