State whether it is true or false for the following :

10. 11. While under investigation by the government, the AJAX Company agrees to pay a settlement to the government in lieu of being fined. The settlement payment is deductible since it was voluntary and not a fine. Premiums paid by a company on a key person life insurance policy where the company is the policy beneficiary are not deductible ordinary and necessary expenditures. A cash basis taxpayer who mails payment for an expense item to a creditor on December 29, 2020 may deduct the item on his/her 2020 Form 1040, even if the check is not delivered to the creditor until January, 2021. 12