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A.J. is the vice president for Keane Products, a marketing consulting firm. On a business trip to New York City in 2018, he meets with three executives from Keane's top account. After the meeting, A.J. takes them to dinner and then to the theater. The theater tickets cost $388. The cost of the meal is $188, including sales tax of $19 and a tip of $38. Throughout the evening, A.J. pays $49 in cab fares.A.J. can deduct $___ as a business expense.

Respuesta :

Answer:

$143

Explanation:

Allowable deduction for the meal = $188 * 50% = $94

Cab fares = $49 is an allowable deduction that can be fully deducted

The costs of entertainment, i.e. the theater tickets cost of $388, has been disallowed for deduction since after 31 December 2017 by the Tax Cut and Jobs Act.

The tips and sales tax are not allowed for deductions.

Therefore,

A.J. can deduct = $94 + $49 = $143