Question

Quan operates an illegal game room in Houston. He files a tax return claiming deductions as follows: Rent $10,000, Supplies $5,000, Fines paid to the city $12,000, Bribes paid to police officers $8,000. The IRS should allow Quan to deductA. $0B. $10,000C. $15,000D. $33,000E. $35,000

Answer 1

Answer: $15,000

Step-by-step explanation:

From the question, we are told that Quan operates an illegal game room in Houston and that he files a tax return claiming deductions as follows: Rent $10,000, Supplies $5,000, Fines paid to the city $12,000, Bribes paid to police officers $8,000.

From the above analysis, it should be noted that the brine paid to the police and fines that was paid to the city will not be part of the deduction.

Therefore, the IRS should allow Quan to deduct :

Rent = $10,000,

Supplies = $5,000

Total = $15,000