1. What are the components of an ordinary and necessary business expense?

2. List 4 examples of ordinary and necessary business expenses a business can

generally take.

3. List 4 examples of business expenses that are not ordinary and necessary business

expenses.

4. Define depreciation.

5. On January 1, 2018, John Inc., purchased for $10,000, a copier to use in its

business. The copier is a 5-year property. John Inc. elects to use the straight-line

method of depreciation. What is the amount of John Inc.s depreciation for 2018?