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8 October, 14:08

Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $290 for the meal and $250 for the theatre tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense?

a) $540

b) $270

c) $145

d) $125

e) none - the meals and entertainment are not deductible except during travel

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Answers (1)
  1. 8 October, 17:01
    0
    a) $540

    Explanation:

    Since the value of the expense were considered by the company as normal and reasonable under the circumstance, the total of $540 representing $290 for meal and $250 for tickets are treated as business expenses.
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