Question

Robert entertains several of his key clients on January 1 of the current year. Expenses paid by Robert are as follows:

Cab fare $ 60
Cover charge at supper club 200
Dinner at club 800
Tips to waiter 160
Presuming proper substantiation, Robert's deduction is:
a. $610.
b. $640.
c. $740.
d. $1,220.
e. None of these.

Answer 1

The deductible expenses for Robert's entertainment are $1,060, resulting in a deduction of $1,220.

Step-by-step explanation:

To calculate Robert's deduction, we need to consider the expenses that are deductible. The cab fare, cover charge, and dinner at the club are all considered deductible expenses. However, the tips to the waiter are not deductible. So, the total deductible expenses would be $60 (cab fare) + $200 (cover charge) + $800 (dinner) = $1,060.

Therefore, the correct answer is d. $1,220.