Question 1 Fines and penalties paid to the government for the violation of a law are: Question 1 options:

1)

Generally deductible for tax purposes as business expenses

2)

Not deductible for tax purposes

3)

Deductible if ordinary and necessary

4)

Deductible if reasonable in amount

Question 2 The tax laws generally allow taxpayers to deduct expenses incurred while violating public policy, provided that the expenditure is ordinary and necessary for the taxpayer's trade or business. Question 2 options: 1) True 2) False