For an Expense to Be Ordinary,it Must Be Customary or Usual

question 73

True/False

For an expense to be ordinary,it must be customary or usual in the taxpayer's particular business.

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Definitions:

Weighted Average Cost of Capital (WACC)

The rate that a company is expected to pay on average to all its security holders to finance its assets, a measure of the cost of capital.

Intrinsic Value

The inherent, actual value of an asset, determined by internal characteristics and fundamentals, rather than current market price.

Closely Held Corporation

A corporation owned by a small group of people who might also be involved in its management, with shares that are not publicly traded.

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.