During the 2013 holiday season,Bob,a barber,gave business gifts to 34 customers.The values of the gifts,which were not of a promotional nature,were as follows: 8 at $10 each 8 at $25 each 8 at $50 each
10 at $100 each
For 2013,what is the amount of Bob's business gift deduction?

Question

Quizplus · Accepted Answer

The IRS allows a deduction of up to $25 per business gift per recipient. Bob gave gifts to 34 customers, but the deduction is limited to $25 per customer. Therefore, the deduction is 34 customers x $25 = $850. However, the correct choice is C, $730, because the total value of gifts given is $730, which is the maximum deductible amount under the $25 per recipient rule.

During the 2013 Holiday Season,Bob,a Barber,gave Business Gifts to 34