Only 50 of business meal and entertainment expense is

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Unformatted text preview: arget's stock, however. Choice "d" is incorrect. There is no requirement that Jaxson surrender assets for the reorganization to qualify as tax-free. CPA-02096 Type1 M/C A-D 33. CPA-02096 ARE Nov 94 #31 Corr Ans: B PM#46 R 3-01 Page 19 Banks Corp., a calendar year corporation, reimburses employees for properly substantiated qualifying business meal expenses. The employees are present at the meals, which are neither lavish nor extravagant, and the reimbursement is not treated as wages subject to withholdings. For 1994, what percentage of the meal expense may Banks deduct? a. b. c. d. 0% 50% 80% 100% CPA-02096 Explanation 15 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Choice "b" is correct. Only 50% of business meal and entertainment expense is deductible. Choices "a", "c", and "d" are incorrect. Each of these is an incorrect percentage. CPA-...
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