2014 (Taxation) Bar Exam Questions: Question 12

[Answer / discuss the question below. Or see 2014 bar exam Taxation Instructions; 2014 Taxation essay and multiple choice Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 and 29; See also 2014 Bar Exam: Information, Discussions, Tips, Questions and Results]

XII.

Which of the following should not be claimed as deductions from gross income? (1%)

(A) discounts given to senior citizens on certain goods and services.

(B) advertising expense to maintain some form of goodwill for the taxpayer’s business.

(C) salaries and bonuses paid to employees.

(D) interest payment on loans for the purchase of machinery and equipment used in business.

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