Question

Sue is a small business owner who often gives gifts to clients. She gives a $40 gift to her client, Mr. Smith, and his wife. Sue spent $6 to wrap the gift. She also gave out 400 calendars with her company name on them. Each calendar cost $1. Sue also gave her secretary a $370 watch for his 10 years of service. How much of the above expenses may she deduct? a. None of these b. $446 c. $795 d. $816 e. $801

Answer 1

total amount of expenses = $801

so correct option is e. $801

Step-by-step explanation:

given data

gift to client = $40

wrap the gift = $6

calendar cost = $1

calendar = 400

watch = $370

solution

we get here Calendar cost that is

Calendar cost = 400 × $1

Calendar cost = $400

and

we know that deduction limit of gift that is given t the another person is = $25

so here total amount of expenses

total amount of expenses = $25 + $6 + $370 + $400

total amount of expenses = $801

and it may be deducted