Question: Ace Corp. had the following items. Indicate whether the itme is (A) Income, (B) Deduction, or (C) not relevant for the tax return. - A.

Ace Corp. had the following items. Indicate whether the itme is (A) Income, (B) Deduction, or (C) not relevant for the tax return.

- A. B. C.

Sales Revenue = $27,000,000
- A. B. C.

Compensation of three top Officers = 2,000,000 each x 3 = $6,000,000
- A. B. C.

Payroll Taxes = $85,000
- A. B. C.

Cost of Goods Sold = $7,500,000
- A. B. C.

Life Insurance Proceeds received by Corp. from Death of CEO $200,000

- A. B. C.

City of Austin Texas Bond Interest Recieved = $15,000
- A. B. C.

Advertising = $205,000
- A. B. C.

Business Gift to Suppliers $50 per participant x 150 suppliers = $7,500
- A. B. C.

Emlpoyee Health Insurance Benefits = $350,000
- A. B. C.

Capital Loss (no capital gain) = ($16,000)
A.

Income
B.

Deduction
C.

Not relevant for this return

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