Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off she designs and make evening gowns to earn an extra living. She also invested the money she made out of her dress-making business and are earning dividends. She incurred the following expenses: Purchase material to use in her dress-making business, Purchase material to make herself a new dress, Purchase a computer to use in her business to take orders from clients, and Purchase a new sewing machine. YOU ARE REQUIRED to choose the incorrect answer. Select one: O a. The material purchase to use in her business will be deductible in terms of the general deduction formula. O b. The new sewing machine will not be deductible in terms of the general deduction formula. c. The material purchase to make herself a new dress will not be deductible in terms of the general deduction formula. O d. The computer purchase for her business will be deductible in terms of the general deduction formula.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 34P
icon
Related questions
Question
Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off she
designs and make evening gowns to earn an extra living. She also invested the money she made out of her
dress-making business and are earning dividends. She incurred the following expenses:
Purchase material to use in her dress-making business,
Purchase material to make herself a new dress,
Purchase a computer to use in her business to take orders from clients, and
Purchase a new sewing machine.
YOU ARE REQUIRED to choose the incorrect answer.
Select one:
O a. The material purchase to use in her business will be deductible in terms of the general deduction
formula.
O b. The new sewing machine will not be deductible in terms of the general deduction formula.
O c. The material purchase to make herself a new dress will not be deductible in terms of the general
deduction formula.
d. The computer purchase for her business will be deductible in terms of the general deduction
formula.
Transcribed Image Text:Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off she designs and make evening gowns to earn an extra living. She also invested the money she made out of her dress-making business and are earning dividends. She incurred the following expenses: Purchase material to use in her dress-making business, Purchase material to make herself a new dress, Purchase a computer to use in her business to take orders from clients, and Purchase a new sewing machine. YOU ARE REQUIRED to choose the incorrect answer. Select one: O a. The material purchase to use in her business will be deductible in terms of the general deduction formula. O b. The new sewing machine will not be deductible in terms of the general deduction formula. O c. The material purchase to make herself a new dress will not be deductible in terms of the general deduction formula. d. The computer purchase for her business will be deductible in terms of the general deduction formula.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Organizational Ethics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage