For which type of entity does the entity not pay compensation to an owner who is working for the entity?

S corporation

C corporation

Entity taxed as a partnership

Sole proprietorships

None of the choices is correct.

The deduction for business interest expense is limited to the sum of (1) business interest income and (2) 30 percent of the adjusted taxable income of the taxpayer for the taxable year.

True or False

Holly took a prospective client to dinner at a restaurant, and after agreeing to a business deal, they went to the theater. Holly paid $370 for the meal and separately paid $218 for the theater tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense?

Multiple Choice

Nonethe meals and entertainment are not deductible except during travel.

$588

$294

$370

$109