Which of the Following Is Not Required for an Expenditure

question 8

Multiple Choice

Which of the following is not required for an expenditure to be deductible as a business or investment expense?

• A)recurring in nature
• B)ordinary and necessary
• C)reasonable in amount
• D)incurred by the taxpayer

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Definitions:

Social Stratification

A system of classifying individuals and groups based on socioeconomic status, often leading to unequal opportunities and rewards.

Lower-middle Class

Refers to a social group that is between the working class and the middle class, often characterized by moderate income levels, some post-secondary education, and white-collar or skilled blue-collar jobs.

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.

Upper Class

An elite and largely self-sustaining group who possess most of the country’s wealth; they constitute about 1 percent of the U.S. population.