Portia, a CPA, Operates a Financial and Tax Planning Service

Multiple Choice

Portia, a CPA, operates a financial and tax planning service. During the months of February, March, and April of every year, she hires graduate tax students from The University of Chicago as interns. This year she hires 4 interns. One is her brother, Sidney. She pays all interns except Sidney $20 per hour for help with tax return preparation and tax research. Sidney receives $25 an hour. She cannot deduct the full amount of Sidney's hourly wages because the expense is not

A) appropriate.
B) ordinary.
C) necessary.
D) reasonable.