Explain why each of the following expenditures is or is not deductible:
a. Lumbar, Inc., pays $12,000 as its share of its employees’ Social Security tax. The $12,000 is deductible.
b. Leroy pays a cleaning service $250 per month to clean his real estate office. The $250 is deductible.
c. Janice pays a cleaning service $75 per month to clean her personal residence. The $75 is not deductible.
d. Leyh Corporation purchases land to use as a parking lot for $35,000. The $35,000 is not deductible.
e. Martin spends $50 per month on gasoline for the car he uses to drive to his job as a disc jockey. The $50 is not deductible.