The crucial reason for determining whether an item is deductible as an ex­pense under § 162 or under § 212 is that:(Which option is correct) A.§ 162 business expenses usually are deductions for AGI, while § 212 production-of-income expenses usually are deductions from AGI.   B.Production-of-income expenses are not deductible.    C.It resolves certain ownership questions.   D.§ 162 business expenses are deductions from AGI, while § 212 production-of-income expenses are deductions for AGI.

Accounting depreciation is sometimes referred to more generally as asset depreciation. True or false?

Which of the following statements is true?   Question 2 options: a The capitalizable costs of patents are legal fees and other registration costs. b An identifiable tangible asset developed internally is never recognized in the accounts as an asset. c Intangible assets usually have a residual value that must be considered in the amortization of cost. d An intangible asset is usually amortized by a credit to an income account.

In computing net business income for income tax purposes, which of the following statements is INCORRECT? Question 3Answer a. Income tax paid is not allowed as a business deduction. b. Depreciation is not allowed as a business deduction. c. Capital cost allowance is not allowed as a business deduction. d. An arbitrary reserve is not allowed as a business deduction.