Instructions : Choose the best multiple choice answer and explain why you chose
ID: 2564278 • Letter: I
Question
Instructions : Choose the best multiple choice answer and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all work. All sources must be noted.
____ 31. Bradentertains several of his key clients on 3 February of the current year. Expenses paid by Bradare as follows:
Cab fare
$ 80
Cover charge at supper club
100
Dinner at club
500
Two Falcons play off tickets (face value $300)
500
Tips to waiter
100
Presuming proper substantiation, Hank’s deduction is:
a.
$1,080.
b.
$580.
c.
$640.
d.
$1,280.
e.
None of the above.
Cab fare
$ 80
Cover charge at supper club
100
Dinner at club
500
Two Falcons play off tickets (face value $300)
500
Tips to waiter
100
Explanation / Answer
Option C is correct.
Total expenses spent on Client = $1280
Meal and Entertainment Expenses Subject to the 50% Limit when spent on client so Hank's deduction = 50% x $1280 = $640