ABC Corporation is reviewing its expenditures for the year to determine which can be deducted as business expenses. According to tax regulations, which of the following best defines the criteria for a deductible business expense?

An expense must be extraordinary, rare in occurrence, and strategic, proving to be critical for major business decisions.

An expense must be ordinary, common and accepted in the taxpayer$$s industry, and necessary, implying it is helpful and appropriate for the business.

An expense must be ordinary, occurring frequently in the taxpayer$$s industry, and necessary, implying it is indispensable.

An expense must be conservative, significantly less than what is customary in the local market, and related exclusively to goods sold.