Chloe is a managing director of a company. She would like to deduct the cost of her clothing account instalments. She uses her account to buy clothes she wears to wear to work. Which of the following statement is incorrect?

a.
Chloe incurred an expense when she paid the clothing account instalments.

b.
Chloe paid the clothing account instalments; therefore, she has actually incurred the expense.

c.
The expenditure is part of her income-producing structure and therefore has an enduring benefit.

d.
Chloe carries on a trade because she earns a salary.