Question

a business paid the following expenses for clients at a golf club: annual membership dues ($2,500), green fees when the clients golfed ($1,200) and meals ($1,000). what amount would be deductible for income tax purposes? question 10select one: a. $4,200 b. $1,100 c. $4,700 d. $500

Answer 1

The deductible amount for income tax purposes would be $4,200.

Step-by-step explanation:

To determine the amount that would be deductible for income tax purposes, we need to consider the different expenses paid by the business for clients at the golf club. The annual membership dues of $2,500 would be deductible. The green fees of $1,200 would also be deductible. However, the meals expense of $1,000 would not be fully deductible. Only 50% of meals and entertainment expenses are deductible for income tax purposes.

Therefore, the deductible amount would be $2,500 (annual membership dues) + $1,200 (50% of green fees) + $500 (50% of meals) = $4,200.