Question 64 of 85.
Harlow is a sole proprietor. He operates a sporting goods store. His gross revenue is $99,000 for Tax Year 2023. Harlow expenses would NOT meet the definition of "ordinary and necessary expense"?
\$180 per month for a mobile phone used exclusively for the business.
\$1,700 for advertising costs.
\$2,500 for gifts given to five customers. Each gift is valued at \$500.
\$40,000 in wage expenses paid to three part-time employees.
