Final answer:
Without specific tax law context, an accurate answer cannot be provided. In general, intercompany transactions and expenses involve complex tax implications, varying by jurisdiction. A corporation should consult a tax professional to assess the deductibility of expenses paid on behalf of a subsidiary.
Step-by-step explanation:
The question on whether a corporation can properly deduct an expenditure made to pay an expense of its wholly owned subsidiary is primarily a tax-related concern that falls under the subject of business or corporate finance. Unfortunately, without the specific context of the tax law or jurisdiction being referred to, giving a definitive answer to this question could be misleading. Tax laws can vary significantly by jurisdiction, and deductions that are permissible in one country or state may not be in another.
However, generally speaking, intercompany transactions, including expenses paid on behalf of a subsidiary, can have complex tax implications. In the U.S., for instance, the Internal Revenue Code (IRC) has specific rules governing the deductibility of intercompany expenses, involving concepts like 'arm's length pricing' and 'consolidated tax returns.' A company should consult with a tax professional or accountant familiar with the relevant tax laws to determine the propriety and deductibility of such expenses.