Question

Which of the following is a required test for the deduction of a business expense?

a) ordinary
b) necessary
c) reasonable
d) All of the above
e) None of the above

Answer 1

The correct answer is d) All of the above since all three criteria are required for the deduction of a business expense.

Step-by-step explanation:

In order to deduct a business expense, it must meet three criteria: ordinary, necessary, and reasonable.

Ordinary means that the expense is commonly accepted in the business industry.

Necessary means that the expense is helpful and appropriate for the business.

Reasonable means that the amount of the expense is not excessive or extravagant.

Therefore,