Robert entertains several of his key clients on January 1 of the current year. Expenses paid by Robert are as follows:
Presuming proper substantiation, Robert's deduction is:
A)$610.
B)$640.
C)$740.
D)$1,220.
E)None of these.

Question

Robert entertains several of his key clients on January 1 of the current year. Expenses paid by Robert are as follows: ​
 Presuming proper substantiation, Robert's deduction is:
A)$610. 
B)$640. 
C)$740. 
D)$1,220. 
E)None of these.

Quizplus · Accepted Answer

The total amount of expenses is $640 ($170 + $30 + $40 + $400). This amount falls under the 50% limitation rule for entertainment expenses. Therefore, Robert is allowed to deduct $320 ($640 x 0.5) as entertainment expense deductions.

Robert Entertains Several of His Key Clients on January 1