Which of the Following Is/are Trade or Business Expenses

question 137

Multiple Choice

Which of the following is/are trade or business expenses?
I.Mahlon incurs expenses related to investing in stocks and bonds. Mahlon is a Sociology professor at State University but spends 10-15 hours per week on his investments. Almost 2/3 of Mahlon's annual income comes from his investments as dividends and interest.
II.Shaheen has expenses related to managing her portfolio of securities. The short-term trading of her securities generates most of her annual income. She has no other job.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Similarities

The characteristics or qualities that make items or scenarios alike.

Differences

Variances or distinctions between two or more entities, objects, concepts, or ideas, highlighting their uniqueness.

Examples

Specific instances used to illustrate a point, concept, or method.

Use

The act of employing something for a particular purpose or in a specific manner.