Problem $9-40($LO$.5,7,8,9)$

Ava recently graduated from college and is interviewing for a position in marketing. Gull Corporation has offered her a job as a sales representative that will require extensive travel and entertainment but provide valuable experience. Under the offer, she has two options: she receives a salary of $$53,000,$ and she absorbs all expenses; she receives a salary of $$39,000,$ and Gull reimburses for all expenses. Gull assures Ava that the $$14,000$ difference in the two options will be adequate to cover the expenses incurred.

From the dropdown list, select either "True" or "False" to indicate whether the following statements are true or false regarding Ava's options.

a$.$If Ava chooses the $$53,000$ option, it makes her subject to the $50\%$ limit for business meals and entertainment.

TrueFalse

b$.$If Ava chooses the $$39,000$ option, it makes her subject to the $50\%$ limit for business meals and entertainment.

TrueFalse

c$.$Ava will be able to deduct the unreimbursed employee business expenses on her tax return.

TrueFalse