Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction.
Expenditure
Amount Salaries and wages to employees ................................... $400,000
Purchase of new office building . 250,000
Payment of illegal parking ?nes of President ..................................... 1,400
Payment of wedding expenses for President's daughter's wedding 16,000
Entertainment expenses related to company business .................. 25,000
Interest on money borrowed to buy tax-exempt securities .... 9,000
Total expenditures ........................... $700,400