Question

Jones operates an upscale restaurant and he pays experienced cooks $43,000 per year. This year, he hired his son as an apprentice cook. Jones agreed to pay his son $46,400 per year. Which of the following is a true statement about this transaction? Jones will be allowed to deduct $46,400 only if his son eventually develops into an expert cook. Jones will be allowed to accrue $46,400 only if he pays his son in cash. Jones will be allowed to deduct $43,000 as compensation and another $3,400 can be deducted as an employee gift. Jones is not entitled to any business deduction until the son is an experienced cook. None of the choices are true.

Answer 1

In this scenario, Jones operates an upscale restaurant, he traditionally pays experienced cooks $43,000 per year, and he hired his son at a higher salary of $46,400 per year. Evaluating the potential deductions Jones can make:

1. **Jones will be allowed to deduct $46,400 only if his son eventually develops into an expert cook**: This is not true. Business deductions for salary are generally based on the services provided, not solely on future potential.

2. **Jones will be allowed to accrue $46,400 only if he pays his son in cash**: This is not true. Accruing expenses for compensation does not specifically require payment in cash. It requires proper accounting methods aligning with the payment and services rendered.

3. **Jones will be allowed to deduct $43,000 as compensation and another $3,400 can be deducted as an employee gift**: This is not true. Employee gifts are generally subject to specific limitations and requirements. Additionally, compensation and gifts are typically treated separately under tax regulations.

4. **Jones is not entitled to any business deduction until the son is an experienced cook**: This is not true. Compensation paid for services rendered is generally deductible as long as it is reasonable and necessary for the business.

Based on these points, the correct statement about this transaction is:

**None of the choices are true.**

To elaborate, Jones could deduct the entire $46,400 as a business expense if the salary is deemed reasonable compensation for the work provided, even if his son is currently an apprentice. The IRS might scrutinize the compensation for being higher than what is normally paid to other experienced cooks, but if it’s justifiable within the business context, the full amount can typically be deducted — contingent on meeting the criteria for reasonable and necessary business expenses.

Answer 2

objects less than 4 inches wide that begin with a
make them unique

Answer 3

1. Mini cactus
2. Nano ruler
3. Micro spoon
4. Tiny whistle
5. Petite vase

Answer 4

30 more things

Answer 5

6. Baby bell pepper
7. Pocket compass
8. Little keychain
9. Miniature dice
10. Nano flashlight
11. Teeny-tiny toothbrush
12. Micro matchbox
13. Lilliputian pen
14. Wee stapler
15. Diminutive flag
16. Nano figurine
17. Mini magnifying glass
18. Tiny paperclip
19. Baby maraca
20. Micro chess set
21. Petite nail file
22. Pocket thermometer
23. Mini harmonica
24. Teeny-tiny candle
25. Nano cocktail umbrella
26. Miniature bottle opener
27. Tiny origami crane
28. Baby hair clip
29. Micro sewing kit
30. Lilliputian kaleidoscope

Answer 6

no, the small objects have to start with letter a

Answer 7

1. Atom
2. Ant
3. Ankle bracelet
4. Apple slice
5. Acorn
6. Almond
7. Airplane model
8. Amp
9. Arrowhead
10. Asterisk
11. Amulet
12. Aviator sunglasses
13. Apricot
14. Avocado pit
15. Anise seed
16. Algae
17. Aloe Vera leaf
18. Alfalfa sprout
19. Antique button
20. Automobile keychain
21. Ammonite fossil
22. Alabaster bead
23. Angel figurine
24. Agate stone
25. Astronaut figurine
26. Artichoke heart
27. Aztec coin replica
28. Amethyst crystal
29. Avocado seed
30. Agar plate