John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction with his business. Whichof the following expenditures is not deductible in any amount?Dinner with a potential client where the client's business was discussed.A trip to Houston to negotiate a contract.A seminar in Houston on new developments in the software industry.A trip to New York to visit a school chum who is also interested in computers.
A)1 only
B)2 only
C)3 only
D)4 only
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The trip to New York to visit a school chum who is also interested in computers is not deductible because it is not directly related to John's business activities. The other expenditures are all related to John's business and can be considered necessary and ordinary expenses for the operation of the business.

John Is a Self-Employed Computer Consultant Who Lives and Works