1. What are the components of an ordinary and necessary business expense? 2. List 4 examples of...

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Accounting

1. What are the components of an ordinary and necessary businessexpense?
2. List 4 examples of ordinary and necessary business expenses abusiness can
generally take.
3. List 4 examples of business expenses that are not ordinaryand necessary business
expenses.
4. Define depreciation.
5. On January 1, 2018, John Inc., purchased for $10,000, acopier to use in its
business. The copier is a 5-year property. John Inc. elects touse the straight-line
method of depreciation. What is the amount of John Inc.’sdepreciation for 2018?

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1 The components of ordinary expense are those which are common and accepted in the business The components of necessary expense are those expenses which are appropriate and helpful in the business 2 Examples of ordinary and necessary business expenses are Employees Compensation The See Answer

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1. What are the components of an ordinary and necessary businessexpense?2. List 4 examples of ordinary and necessary business expenses abusiness cangenerally take.3. List 4 examples of business expenses that are not ordinaryand necessary businessexpenses.4. Define depreciation.5. On January 1, 2018, John Inc., purchased for $10,000, acopier to use in itsbusiness. The copier is a 5-year property. John Inc. elects touse the straight-linemethod of depreciation. What is the amount of John Inc.’sdepreciation for 2018?