Question

if a restaurant owner paid their child $50 per hour to clear tables in the restaurant, the expense could be denied by which of the following tests?question 7select one: -earning purposeb.capitalc.personal expensed.reasonableness

Answer 1

The expense of paying $50 per hour for table clearing would be denied by the reasonableness test as it's far above the typical market rate for such a job.

Step-by-step explanation:

If a restaurant owner paid their child $50 per hour to clear tables in the restaurant, the expense would most likely be denied by the reasonableness test. This test assesses whether the amount paid in wages is reasonable in relation to the services performed. In this case, $50 per hour is far above the market rate for a table-clearing job, which is typically a minimum wage position.