Which of the Following May Be Deducted in Computing Income

question 92

Multiple Choice

Which of the following may be deducted in computing income from unrelated business activities?

• A) Ordinary and necessary business expenses.
• B) $1,000 exemption.
• C) Charitable contributions.
• D) All of the above.

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Definitions:

Venture Capital

Financing that investors provide to startup companies and small businesses believed to have long-term growth potential.

Start-up Firms

Newly established businesses, often in the early stage of development and research of their products or services.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often reinvested in the business.

Intrapreneurs

Employees within a company who are assigned to work on a special idea or project and are given the freedom to develop the project as an entrepreneur would.