Saturday, November 14, 2009

Who knew taxes were funny?

Here is some humor for you. I am currently studying for the third part of my CPA exam and here is a lovely question I came across in my book. See if you get what I am talking about.

Mock operates a retail business selling illegal narcotic substances. Which of the following item(s) may Mock deduct in calculating business expense?

I. Cost of merchandise
II. Business expenses other than the cost of merchandise

a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.

The correct answer is A. Am I the only one asking the question of why would a drug dealer even file his taxes? Isn’t that the same as walking into a police station and not only confessing to what you do but paying them money too? Please tell me you find this as humorous as I do? And on that note, back to studying. Don’t be jealous.

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