Question

235 ( $235 (50% of the cost of the dinner and theatre) is deductible. Business associates are individuals who the taxpayer reasonably expects to do business with such as customers, suppliers, employees, or advisors. What is the deductible amount for the cost of the dinner and theatre?

Answer 1

The deductible amount for the cost of the dinner and theatre remains at $235, which represents 50% of the total expense ($470) according to typical IRS rules for business entertainment expenses.

Step-by-step explanation:

The deductible amount for the cost of the dinner and theatre, if the cost represents a business entertainment expense typically adhering to IRS rules, would be the stated 50% of the total cost. Therefore, if $235 represents 50% of the total cost, this means the taxpayer incurred a total cost of $470. The deductible amount thus remains at $235, as initially mentioned in the question.