Question

Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $440 for the meal and $190 for the theatre tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense? Multiple Choice None -the meals and entertainment are not deductible except during travel $220 $630 $95

Answer 1

Since here there is evidence that the business discussion happened and this followed by the entertainment expense like meal and movie.
since here the business discussion happened only during dinner and cost incurred in dinner is 440 and 50% of it is deductible and it is 50%*440=220 . It is option B.