Jones operates an upscale restaurant and he pays experienced cooks $42,500 per year. This year he hired his son as an apprentice cook. Jones agreed to pay his son $46,000 per year. Which of the following is a true statement about this transaction? Multiple Choice Jones will be allowed to deduct $46,000 only if his son eventually develops into an expert cook. Jones will be allowed to accrue $46,000 only if he pays his son in cash. Jones will be allowed to deduct $42,500 as compensation and another $3,500 can be deducted as an employee gift. Jones can only deduct $23,000 because an apprentice cook is only worth half as much as an experienced cook. None of the choices are correct.

Jones operates an upscale restaurant and he pays experienced cooks $42,500 per year. This year he hired his son as an apprentice cook. Jones agreed to pay his son $46,000 per year. Which of the following is a true statement about this transaction? Multiple Choice Jones will be allowed to deduct $46,000 only if his son eventually develops into an expert cook. Jones will be allowed to accrue $46,000 only if he pays his son in cash. Jones will be allowed to deduct $42,500 as compensation and another $3,500 can be deducted as an employee gift. Jones can only deduct $23,000 because an apprentice cook is only worth half as much as an experienced cook. None of the choices are correct.