A.

G Ltd. has two items in its inventory at the end of the taxation year. Item 1 has a cost of $16,000 and a market value of $22,000. Item 2 has a cost of $17,000 and a market value of $15,000. Determine the minimum inventory valuation that G can use when determining net income for tax purposes

B.

In the current year D Inc. had the following expenses: $4,000 interest on a loan used to acquire equipment, $20,000 for scientific research and experimental development activity, and $90,000 for stock based compensation expense. Interest was accrued in the current year and paid in the following year. Determine the amount that Ds net income for tax purposes will decrease in the current year due to these expenses.

C.

Which of the following legal expenses would not be considered an outlay on account of capital?

Incorporating a business.

Dealing with a dispute with a customer.

Preparing the agreements on a business takeover.

Registering the ownership of a building.