Jones operates an upscale restaurant and he pays experienced cooks $39,000 per year. This year...
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Accounting
Jones operates an upscale restaurant and he pays experienced cooks $39,000 per year. This year he hired his son as an apprentice cook. Jones agreed to pay his son $43,200 per year. Which of the following is a true statement about this transaction? Jones will be allowed to deduct $43.200 only if his son eventually develops into an expert cook. None of the choices are correct. Jones will be allowed to deduct $39.000 as compensation and another $4.200 can be deducted as an employee gift. O Jones will be allowed to accrue $43,200 only if he pays his son in cash. O Jones can only deduct $21,600 because an apprentice cook is only worth half as much as an experienced cook
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