Question

Donna operates a talent agency as a sole proprietorship, and this year se incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1000 dinner with a film producer where business was discussed. $500 lunch with sister Nancy where no business was discussed. $700 business dinner with a client but Donna forgot to keep any records.$900 tickets to the opera with a client for pleasure. A. $450, B.$900, C.$500,D.$1000,E.$950.

Answer 1

Answer - (A) $450

Explanation

For the claim deduction there should be business discussion and proper account to be maintained but in this case only the half of the last expenditure of $900 would be eligible for deduction as it is related to business so the deduction would be = $900*50% = $450