Multiple Choice: 14: In order to be deductible, business expenses must be: a. Current. b. Ordinary, necessary, and reasonable. c. Extreme. d. Both A and C. 15. In order to be deductible, salaries and other compensation must be: a. Unordinary b. Reasonable. c. Unnecessary d. None of the above. a. 16. Which of the following is a deductible personal expense? Medical expenses. b. Certain state and local taxes. c. Both A and B. d. None of the above. a. 17. In order to be deductible, losses caused by fire, storm, shipwreck, or other casualty or by theft must result from an event that is: Identifiable. b. Damaging to property. Sudden, unexpected and unusual in nature. d. None of the above. c. 18. Generally, when is a casualty loss deducted? a. Five years after the casualty occurred. b. In the year the loss occurs. c. Ten years before the loss occurs. d. None of the above. 19. Depletion is a deduction for the use of: a. Intellectual property. b. Realty. c. Natural resources. d. None of the above. a. 20. In the context of Depreciation and Cost Recovery, "property is defined to include: Services. b. Realty (real property). Personalty (personal property). d. Both B and C. c