Question

Donald operates an accounting firm and has an annual summer party for the employees and their families. He believes the party benefits his employees. The cost of the food and beverages served at the party was $4,000. Donald also pays a band $500 to play at the party.. How much of the total cost can Donald deduct?

a. $- 0 -
b. $2,000
c. $2,500
d. $4,000
e. $4,500

Answer 1

I believe it’s C.$2,500, because i took $500 and subtract it from $4,000 to get the cost.