24.  Which is TRUE? S1: Representation expense of a seller of goods is subject to limitation of 5% of net sales. S2: Interest expense is subject to tax arbitrage if a taxpayer has interest income. S3: Donations to government are deductible in full.  Group of answer choices e. All is false c. S3 only b. S2 only a. S2 and S3 only d. All is true

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 43P
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24. 

Which is TRUE?

S1: Representation expense of a seller of goods is subject to limitation of 5% of net sales.

S2: Interest expense is subject to tax arbitrage if a taxpayer has interest income.

S3: Donations to government are deductible in full. 

Group of answer choices
e. All is false
c. S3 only
b. S2 only
a. S2 and S3 only
d. All is true
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