Deduction concepts include which of the following?

I.            
Capital Recovery Concept.

II.           
Legislative Grace Concept.

III.          
Business Purpose Concept.

IV.         
Ability to Pay Concept.

Only statement I is correct.

Only statement II is correct.

Statements I and II are correct.

Statements I, II, and III are correct.

Statements I, II, III, and IV are correct.