Question

On their birthdays, Lily sends gift certificates (each valued at $25) to Caden (a key client) and to each of Caden's two minor children. Lily can deduct only $25 as to these gifts.

A) True
B) False

Answer 1

The statement is False. Lily can deduct the full value of the gift certificates for Caden and his two minor children.

Step-by-step explanation:

The statement is False.

Lily can deduct the full value of the gift certificates for Caden and each of his two minor children. Since each gift certificate is valued at $25, Lily can deduct a total of $75 ($25 x 3) as business expenses.

However, it's important to note that tax laws and regulations may vary depending on the jurisdiction, so it's always recommended to consult with a tax professional for specific advice.