Expenditures that are subtracted in an effort to calculate the lowest possible taxable income are called ________.

Question

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Deductions are expenses that can be subtracted from taxable income to arrive at a lower taxable income. Exemptions refer to a set amount that can be deducted from taxable income for each taxpayer and dependent. Capital expenses and fixed expenses are not relevant to calculating taxable income.

Expenditures That Are Subtracted in an Effort to Calculate the Lowest