Business Expenses Include I.expenditures That Have a Business Purpose

question 29

Multiple Choice

Business expenses include
I.expenditures that have a business purpose
II.expenditures that are incurred for the production of income.
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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:

Social Security Tax

A mandatory contribution to the U.S. Social Security system, levied on both employers and employees, to fund retirement, disability, and survivorship benefits.

Medicare Tax

A federal tax paid by employees and employers to fund the Medicare program, which provides health insurance for individuals who are 65 years of age and over, or who meet other specific criteria.

Payroll Taxes

Taxes imposed on employers and employees based on the wages and salaries of employees, used to finance social security and Medicare programs.

State Unemployment Contributions

Taxes paid by employers to state government funds for unemployment compensation programs.