Question: PLEASE ANSWER AND EXPLAIN YOUR REASOING WITH 20 FULL SENTENCES!!! PLEASE 15-20 SENTENCES Research Problem 2. Your client, a large construction firm organized as a

PLEASE ANSWER AND EXPLAIN YOUR REASOING WITH 20 FULL SENTENCES!!! PLEASE 15-20 SENTENCES
PLEASE ANSWER AND EXPLAIN YOUR REASOING WITH 20 FULL SENTENCES!!! PLEASE 15-20

Research Problem 2. Your client, a large construction firm organized as a C corporation, allows certain employees (including the president of the corporation) to use its company-owned airplane for nonbusiness flights. The employees include the value of the flights in their income. Your client is uncertain abour bow to treat the expenses related to these nonbusiness flights. In certain situations, the expenses of operating the plane are more than the income imputed to the employees, and in certain circumstances, the expenses are less. In doing some of its own research, your client found Sutberland Lumber-Soutbuest, Inc. [114 T.C. 197 (2000)], which suggests that as long as the employee imputes income, the full amount of the related expenses can be deducted. (The decision in the case was affirmed on appeal, Stitberland Limber-Soutbwest, Inc. v. Comm.. 2001-2 USTC 150.503. 88 AFTR 2d 20015026,255 F.3d 495(CA8). Should your client follow the approach in Stuberland? Explain

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