Because, as per Sec. 119, the exclusion is not available if the business is a partnership or

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Question:

Because, as per Sec. 119, the exclusion is not available if the business is a partnership or a sole proprietorship. The meals and lodging exclusion is available if the business entity is a C corporation. Therefore, only b & c are correct. A is wrong, because tax liability must increase (30000*28%) = $8,400.