16. Which of the following statements is true? a. If a security becomes worthless during the year, any loss is treated as a loss from the sale or exchange of a capital asset on the last day of the year of worthlessness. b. Payments received by a lessor for a lease cancellation are classified as capital gain. c. The only things that the grantee of an option may do with the option are exercise it or let it expire. d. Expenses incurred in an illegal business are not deductible." e. None of the answers provided is correct. .* the only, one that is limited 17. Which of the following statements is not true? a. Rent and royalty expenses are deductible for AGI. True Dec Is Drugaling IS b. Premiums paid on a life insurance policy covering the life of an officer of the corporation are deductible even if the corporation is the beneficiary of the policy. c. Fees paid to prepare a taxpayer's Schedule C are deductible for AGI. d. Taxpayers who elect the foreign-earned income exclusion in one year may switch to the foreign tax credit in any subsequent year. true e. None of the answers provided is correct. 18. Which of the following statements is true? a. Life insurance benefits are taxable to the recipient if received from a policy whose premiums are paid by the employer.X b. An expense cannot be considered ordinary if the taxpayer encounters it only onceX c. An expense is considered necessary if a reasonable or prudent businessperson would incur the same expense under similar circumstances. d. Generally, to be deductible by the taxpayer, the expenditure must be incurred by the taxpayer or be the taxpayer's liability. e. None of the answers provided is correct