1. A deduction for salaries and wages can include:

A) Bonus payments

B) Payment for services performed in prior years

C) Advance payments for service to be performed in future years

D) Both (a) and (b)

2. Under current law, tax planning and compliance expenses incurred by individuals are:

A) Deductible if properly incurred as a business expense on Schedule C.

B) Deductible on Schedule A as part of the "miscellaneous itemized deductions in excess of 2%-of-AGI" category.

C) Limited to the income tax area

D) All of the above.

3. Dealers in illegal drugs can deduct:

A) All ordinary and necessary business expenses

B) Cost of goods sold

C) Fines and penalties paid to the government for the violation of a law

D) None of the above