Given the following information, what items can NEEM CPAs & Associates, a cash-basis taxpayer, deduct on its 2021 tax return?

1. Reimbursements provided to its staff for qualified business travel under a qualified plan.
2. Automobile expenses for each of the CPAs children who do not work. The vehicles are owned by the firm.
3. FMV of excursions given to employees as bonuses. Deemed reasonable compensation.
4. Uncollectable accounts receivable.

• A.II and III.

• B.I and III.

• C.III and IV.

• D.I and II.