Question: 1 ) CDE is an accrual - method, calendar - year C corporation. In 2 0 2 3 , CDE incurred the following expenses. For

1) CDE is an accrual-method, calendar-year C corporation. In 2023, CDE incurred the following expenses. For each of the expenses, please indicate whether it can be deducted as business expense for tax purposes, and if so, the amount of deduction.
a. $500 fine for violating construction codes.
b. $800 interest expense on a short-term loan. Half of the loan proceeds were used to pay salaries and the other half was invested in municipal bonds (CDEs average annual gross receipts for 2020-2022 was $500,000).
c. CDEs employees took important clients to basketball games, the cost of tickets is $700.
d. CDE incurred $2,800 of business meals.

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