Which of the Following May Be Deductible

question 15

Multiple Choice

Which of the following may be deductible?

• A)Bribes that relate to a U.S. business.
• B)Fines paid for violations of the law.
• C)Interest on a loan used in a hobby.
• D)All of the above.
• E)None of the above.

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Definitions:

Public Company Accounting Oversight Board (PCAOB)

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors.

Investment Company Act of 1940

A law that regulates investment companies and the activities they engage in, including mutual funds, to protect the interests of investors.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.