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12 January, 12:55

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

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  1. 12 January, 16:11
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    total amount of expenses = $801

    so correct option is e. $801

    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
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