Concept:
Henri de Toulouse-Lautrec (1864--1901) was a French Post-Impressionist painter, printmaker, and illustrator. He was greatly influenced by Edgar Degas, particularly in his treatment of modern urban life, unconventional compositions, oblique viewpoints, and depictions of performers and nightlife.
Degas himself was influenced by Japanese Ukiyo-e prints, which inspired his asymmetrical compositions, cropped figures, and unusual viewing angles. These stylistic features were later adopted and further developed by Toulouse-Lautrec in his paintings and posters of Parisian cabarets and theatres.
Step 1: Examine Assertion (A).
Henri de Toulouse-Lautrec was indeed strongly influenced by Edgar Degas.
\[
\boxed{\text{Assertion (A) is Correct}}
\]
Step 2: Examine Reason (R).
Degas' art is characterized by influences from Japanese prints, oblique viewpoints, cropped compositions, and scenes of modern nightlife, all of which inspired Toulouse-Lautrec.
Hence,
\[
\boxed{\text{Reason (R) is Correct}}
\]
Step 3: Check whether (R) explains (A).
The stylistic qualities mentioned in the Reason explain why Toulouse-Lautrec was inspired by Degas.
Therefore,
\[
\boxed{\text{Both (A) and (R) are correct and (R) is the correct explanation of (A).}}
\]
Hence,
\[
\boxed{\text{(A)}}
\]