Flamingo Corporation furnishes meals at cost to its employees at a cafeteria it maintains.The cost of operating the cafeteria is not subject to the overall limitation (50%).

Question

Quizplus · Accepted Answer

According to the IRS regulations, the cost of operating an employee cafeteria is not subject to the overall limitation of 50% on meals and entertainment expenses. Therefore, the statement is true.

Flamingo Corporation Furnishes Meals at Cost to Its Employees at a Cafeteria