Jan owns the Mews Bar and Grill. Every year at Christmas, he has a party for his 20 employees and their families. This year’s party cost $1,600. At the party, Jan presented each employee with a $50 gift certificate redeemable for merchandise at a local department store. How much can Jan deduct for entertainment and gift expenses?
Assume that the party is attended by 10 employees and 10 of the Mews’s major suppliers. At the party each receives a holiday cheese basket that cost $30. How much can Jan deduct?