In order for a business expense to be deductible it must be ordinary, necessary, and reasonable. Explain
Question:
In order for a business expense to be deductible it must be ordinary, necessary, and reasonable. Explain what these terms mean.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (17 reviews)
An ordinary expense is an expense that bears a reasonable and pro...View the full answer
Answered By
Michael Mulupi
I am honest,hardworking, and determined writer
4.70+
72+ Reviews
157+ Question Solved
Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Question Posted:
Students also viewed these Business questions
-
In order for a company's shares to be listed (traded) on a Canadian stock exchange, the company's annual financial statements must be audited by an independent auditor. Why is an audit important to...
-
In order for a derivatives market to function most efficiently, two types of economic agents are needed: hedgers and speculators. Explain.
-
In order for a linear system with augmented matrix [A ( b] to be consistent, what must be true about the ranks of A and [A ( b]?
-
Simplify each expression in Problems 722. Classify each answer by number of terms and degree. 3(x5) 2(x + 8)
-
What type of symmetry is exhibited by the two waveforms shown?
-
A closed economy has income of $1,000, government spending of $200, taxes of $150, and investment of $250. What is private saving? a. $100 b. $200 c. $300 d. $400
-
Describe the Incremental Development Model, its characteristics, and shortcomings.
-
A Kirk Limited is trying to determine the value of its ending inventory as of February 28, 2012, the companys year-end. The accountant counted everything that was in the warehouse, as of February 28,...
-
Summary and analysis of the primary evidence. To complete the summary and analysis, must address these specific questions. Who was the author[s], date and/or origins of the primary source? To whom...
-
1) Using the methods for determining the number of degrees of freedom of a rigid body in 3-dimensional space from the book and the video, find the number of degrees of freedom of a rigid body in a...
-
Because expenses incurred both in a business and for the production of investment income are deductible, why is it important to determine in which category a particular activity falls?
-
What are the criteria for distinguishing between a deductible expense and a capital expenditure?
-
What sort of dependence seems to exist between whether U.S. residents believed that the amount of violent programming had increased and whether U.S. residents believed that the overall quality of...
-
A light, unstretchable string is wound around the perimeter of a \(4.0-\mathrm{kg}\) disk that has a radius of \(0.50 \mathrm{~m}\) and is free to rotate about an axle that runs perpendicular to the...
-
Use estimation to select the best response in Problems 7-24. Do not calculate. A reasonable APR for a credit card is A. \(1 \%\) B. \(30 \%\) C. \(12 \%\)
-
A \(1.0-\mathrm{kg}\) ring with an inner radius of \(0.060 \mathrm{~m}\) and an outer radius of \(0.080 \mathrm{~m}\) is sent rolling without slipping up a ramp that makes an angle of \(30^{\circ}\)...
-
The forecast demand for fudge for the next four months is 120, 160, 20, and 70 pounds. a. What is the recommended production rate if a level strategy is adopted with no backorders or stock outs? What...
-
A \(320 \mathrm{~g}\) can of soup is \(10.8 \mathrm{~cm}\) tall and has a radius of \(3.19 \mathrm{~cm}\). (a) Calculate the can's rotational inertia about its axis of symmetry, assuming the can to...
-
What is a defined-contribution pension plan? Are these plans contributory or non-contributory?
-
Let (X. A. p) be a measure space. Show that for any A,B A, we have the equality: (AUB)+(An B) = (A) + (B).
-
In which of the following unrelated exchanges is the Sec. 351 control requirement met? If the transaction does not meet the Sec. 351 requirements, suggest ways in which the transaction can be...
-
Sam and Veronica own 300 and 200 shares, respectively, of Poly-Electron Corporation stock, which represent all the shares outstanding. The current market value per share is $25. Poly-Electron needs...
-
Al, Bob, and Carl form West Corporation and transfer the following items to West: Item Transferred The common stock has voting rights. The preferred stock does not. a. Is the exchange nontaxable...
-
Consider the Obsidian Project, which requires an investment of $362,868 initially, with subsequent cash flows of $58,160, $72,091 and $97,900. We can characterize the project with the following...
-
1. Define human resource (HR) management and explain how it relates to the management process. Cite examples of the application of these concepts, preferably from personal, professional experience.
-
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materialsX442 and Y661. The company uses a...
Study smarter with the SolutionInn App