Henry entertains several of his key clients on January 1 of the current year.Expenses paid by Henry are as follows: Presuming proper substantiation, Henry's deduction is:

Question

Henry entertains several of his key clients on January 1 of the current year.Expenses paid by Henry are as follows:  Presuming proper substantiation, Henry's deduction is:

Quizplus · Accepted Answer

According to IRS rules, business entertainment expenses are generally deductible up to 50% of the expenses incurred.

Here, Henry incurred $1,280 in entertainment expenses. Thus, his deduction would be $1,280 multiplied by 50%, which equals $640. Therefore, the correct answer is choice C.

Henry Entertains Several of His Key Clients on January 1