It is impractical to trace insurance premiums to the

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References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Determine the
limits on deducting business expenses.
It is impractical to trace insurance premiums to the receipt of proceeds.
Congress presumes that all expenses are not deductible unless specifically allowed in the
Internal Revenue Code.
This rule was grandfathered from a time when the Internal Revenue Code disallowed all
insurance premiums deductions.
Expenses associated with the production of tax-exempt income are not deductible.
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34.
Award: 10.00 points
Paris operates a talent agency as a sole proprietorship, and this year she incurred the following
expenses in operating her talent agency. What is the total deductible amount of these
expenditures?
$1,000 dinner with a film producer where no business was discussed
$500 lunch with sister Nicky where no business was discussed
$700 business dinner with a client but Paris forgot to keep any records (oops!)
$900 tickets to the opera with a client following a business meeting
References
Multiple Choice Difficulty: 3 Hard Learning Objective: 01-02 Determine the
limits on deducting business expenses.