Dt full test 1 Case study 1

In CS 1 of DT FT 1 MCQ - 1.4 why the wrist watches distributed to dealers is being considered as inadmissible expenses, and if yes then why not in MCQ 2 and 5 . Also, why the inadmissible expenses are being reduced from net profit as they should be added if being disallowed.

Please clarify.