Question

Paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1,000 dinner with a film producer where no business was discussed; $500 lunch with sister Nicky where no business was discussed; $700 business dinner with a client but Paris forgot to keep any records; $900 tickets to the opera with a client following a business meeting.A. $450B. $900C. $1,100D. $1,200E. $800

Answer 1

Answer:

correct option is A. $450

Explanation:

we know that half the cost of the business meeting or the business meeting lunch or the dinner that is deductible even

and if the meal are associate with the active businessman or the sole proprietor then half the amount that is here  $900 tickets to the opera with client for meeting is deducted

so that is deducted =  $\frac{900}{2}$

deducted amount  = $450

so correct option is A. $450