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Home work-Chapter 6
Elaine spends $1,000 on business lunches to entertain her customers at the local country club.
The club charges an annual membership fee of $800. Elisa uses the facility 80 percent of the time for business.
Her employer does not reimburse her for any of these expenses. What is her deductible expense?
During the winter holiday season, Taurus Corporation gave 12 business gifts to 12 customers.
The value of the gifts,
which were not of an advertising nature, was as follows:
Taurus can deduct as a business expense
Walker, an employee of Lakeview Corporation, drives his automobile 18,000 business miles during 2010. He pays
tolls of $145 while traveling on business. What amount can Walker deduct as unreimbursed transportation expenses
before considering any limitations on itemized deductions?
$9,180 for AGI.
$9,325 for AGI.
$9,180 from AGI.
$9,325 from AGI.
Penny owns her own business and drives her car 12,000 miles a year for business and 3,000 miles a year for
commuting and personal use.
She wants to claim the largest tax deduction possible for business use of her car.
Her total expenses related to her auto for 2011 are as follows:
Gas, oil, and maintenance
Interest on car loan
Parking fees and tolls (100% business)
deduction for automobile expense is:
Which of the following business expenses is/are subject to a 50% deduction limit for 2011?
Meals while traveling
Lodging while traveling
Shelly pays $190 to fly from Santa Fe to Denver. She spends three days finalizing a contract with the management
of El Rancho Restaurant for the delivery of green chili in the upcoming year. Because she finalized the contract,
Shelly spends two-days attending the National Western Stock Show. Hotel costs are $108 per night and meals are
$22 per day. How much can Shelly deduct as business expenses from her trip?