Final answer:
Sandra can potentially deduct 50% of the meal costs if they are separate from entertainment expenses and meet other necessary criteria, but she cannot deduct entertainment costs.
Step-by-step explanation:
The question addresses the portion of meals and entertainment costs that can be deducted for tax purposes by Sandra's accounting firm. Under the Tax Cuts and Jobs Act of 2017, the deductible amount for business meals and entertainment changed. While the specifics depend on tax laws at the exact time and may have later amendments, the general rule past 2017 has been that business entertainment expenses are no longer deductible, but meals may be partially deductible if they are not extravagant and are necessary for the business. Therefore, without specific details to suggest otherwise, Sandra may potentially deduct 50% of the meal portion of the $1,500 cost if it is distinct from entertainment. Since the question doesn't specify the breakdown of meals versus entertainment, more information would be needed to give an exact deductible amount.
The amount of the meals and entertainment cost that Sandra can deduct depends on the tax deduction rules set by the government. According to the IRS guidelines, the maximum deduction for meals and entertainment expenses is 50% of the actual cost incurred.In this case, Sandra has paid $1,500 for the Christmas party. Therefore, the maximum amount she can deduct for tax purposes would be 50% of $1,500, which is $750.