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 deduction for entertainment expenses is generally limited to 50% of the actual cost. Therefore, Robert can only deduct half of the total expenses, which is $640 ($1,280 x 50%).

Robert Entertains Several of His Key Clients on January 1