Question: Marty is a sales consultant. Marty incurs the following expenses related to entertainment of his clients in 2012: Dues to a country club......................................................$4,500 (The country

Marty is a sales consultant. Marty incurs the following expenses related to entertainment of his clients in 2012:

Dues to a country club......................................................$4,500

(The country club was used for business 25

days of the total 75 days that it was used.)

Business meals at the country club...........................................850

Dues to a tennis club.........................................................1,000

(The club was used 75 percent for directly related business.)

Tennis fees (personal use).....................................................260

Business meals at various restaurants.....................................2,250

a. How much is Marty's deduction for entertainment expenses for 2012? $__________

b. For each item listed above that you believe is not allowed as a deduction, explain the reason it is not allowed._________________________________________________________________

Step by Step Solution

★★★★★

3.44 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Business meals at the country club 850 Business meals ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1124-B-A-I-T(2258).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

During the year, Brenda has the following expenses related to her employment. Airfare ............................................................................... $8,500 Meals...

A&J Co. incurred the following expenses related to patented drugs. 1. Indicate costs that are reported as research and development expenses on the income statement. 2. Indicate costs that are...

Can Joe Corporation deduct the following expenses related to its business? a. Legal fee paid ($40,000) to acquire a competing chain of stores b. Legal fee paid ($12,000) to determine whether it...

what is resourced based view in public administration and why is it important?

UCD Company uses a job costing accounting system for its production costs. A predetermined overhead rate based on direct labor-hours is used to apply overhead to individual jobs. An estimate of...

What are some strategies for handling a situation in which you cannot say yes or provide a product or service to a customer with a primary style of expressive?

An electronic system consists of two parts that function independently of one another. The lifetime T (in hours) for each part of the system is a random variable with distribution function (i) Find...

You are a manager in charge of monitoring cash flow at a company that makes photography equipment. Traditional photography equipment comprises 80 percent of your revenues, which grow about 2 percent...

323 The matching principle matches: 1 ered Select one A. assets with liabilities ed out of 0 B. expenses with revenues C. creditors with businesses D. customers with suppliers

Maggie Hawthorne is a currency speculator. She has noticed that recently the euro has appreciated substantially against the U.S. dollar. The current exchange rate of the euro is $1.15. After reading...

In Exercises use the rules of differentiation to find the derivative of the function. (x) = x - 11x

The length of the winning word in the National Spelling Bee is approximately normally distributed with a mean of 9 and standard deviation of 2. (a) Where on the standard normal curve would a word...

Which musical has a participatory Be - In as its finale? Select one: Spring Awakening American Idiot Hair Hedwig and the Angry Inch

employees at the plants are also shown. These data are as follows: MEdiCEll $7,400 $14,400 $12,300 $6,200 $3,100 Employees 123 402 256 109 67 a. Compute the weighted mean medical payments for these...

The bar shown in Fig. 11.12(a) is attached at its ends to unyielding supports. There is no initial stress in the bar. A force P is then applied as shown. (a) What are the forces in the steel and...

A supplier to an OEM company is going to use Scrum to develop a system. The Manufacturing company has laid out 245 functional requirements and 19 external interface requirements. The supplier has...

3. Using the search term social media policy examples, find a corporate policy statement on employee use of social media. In a 500-word memo to your instructor, explain whether the policy statement...

A Firm intends to invest some capital for a period of 15 years; the Firm's Management considers three Options, each consisting of purchasing a machinery of a specific brand, different for each...

(Two Temporary Differences, One Rate, 3 Years) Gordon Company has two temporary differences between its income tax expense and income taxes payable. The information is shown below. The income tax...

(Carry back and Carry forward of NOL, No Valuation Account, No Temporary Differences) The pretax financial income (or loss) figures for Synergetic Company are as follows....

(Two NOLs, No Temporary Differences, No Valuation Account, Entries and Income Statement) Lanier Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2003 through...

IN JAVA PLS Create a public class BinaryTreeToMap that provides a single static method toMap. toMap accepts a BinaryTree and returns a Map mapping the values in the tree to the count of the times...

Your client has $10,000,000 of cash available for investment. The expected return on your equity market fund is 25% per year with a standard deviation of 50%, that on your risky long-term corporate...

QUESTION 1 Davi currently has $ 1 0 , 0 0 0 saved for a new car that she plans to buy for $ 4 0 , 0 0 0 in 3 years. She believes she can earn an annual return of 6 . 3 6 percent. How much does Davi...