According to the Internal Revenue Code §162, Deductible Trade or Business

question 59

Multiple Choice

According to the Internal Revenue Code §162, deductible trade or business expenses must be one of the following?

• A) Incurred for the production of investment income
• B) Ordinary and necessary
• C) Minimized
• D) Appropriate and measurable
• E) Personal and justifiable

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Definitions:

Duty of Compensation

The obligation to make payment or restitution to someone for loss, suffering, or injury.

Obligation

A legal or moral duty to do or refrain from doing something.

Agent

A person or entity appointed to act on behalf of another in dealings with third parties, often in commercial transactions.

Employer-Employee Relationship

This refers to the formal relationship between an employer who hires an employee to perform some duty in exchange for compensation.