After negotiating a new supply contract with Jim,Beth takes him to dinner at the Magnolia Cafe.The dinner costs $94.The amount includes tip ($15)and sales tax ($5).Cab fare to and from the restaurant is $20.How much can Beth deduct for the evening's expenditures?

Question

Quizplus · Accepted Answer

Beth can deduct the cost of the dinner, which is $94, minus the tip and sales tax, which total $20. Therefore, she can deduct $74 for the dinner. In addition, she can deduct the $20 cab fare. The total deduction is $74 + $20 = $94. However, she cannot deduct the entire cost of the dinner because it included the tip and tax.

After Negotiating a New Supply Contract with Jim,Beth Takes Him