Ordinary and Necessary Business Expenses, Other Than Cost of Goods

question 6

True/False

Ordinary and necessary business expenses, other than cost of goods sold, of an illegal drug-trafficking business do not reduce taxable income.

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Definitions:

Shelf Life

The time period during which a product, such as food or medicine, remains safe and effective to use.

Calorie

A unit for measuring the heat value of food.

Heat Value

The amount of heat produced by the complete combustion of a given substance, often measured in Joules per kilogram (J/kg) or British Thermal Units (BTU).

Food

any nutritious substance that people or animals eat or drink to maintain life and growth.