At a business lunch to entertain a new client, J spent $40 for the meal, $4 tax, $6 tip, and $10 cab fare.Assuming he is not reimbursed, what is the allowable deduction?

Question

Quizplus · Accepted Answer

The allowable deduction for a business meal is typically 50% of the total meal expense (including tax and tip), but cab fare is not deductible as a meal expense. Thus, the deduction is 50% of ($40 + $4 + $6) = $25. However, since none of the provided options accurately reflects this calculation, the correct answer is E) Some other amount.

At a Business Lunch to Entertain a New Client, J