Question: 6 . ( LO 2 ) Hal Capone owns several businesses in the downtown area. One business he owns is a restaurant that also provides

6.(LO2) Hal Capone owns several businesses in the downtown area. One business he owns is a restaurant that also provides illegal cash laundering services. Hal had the following tax items this year:
Revenue
$780,000
Cost of goods sold
$330,000
Wages paid
$190,000
Depreciation
$36,000
Utilities
$1,800
Office expense
$750
Accounting fee
$2,250
Which expenses can Hal deduct from the pawn shop and cash laundering services?
If Hals business was drug trafficking rather than cash laundering, what expenses would be deductible?

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