Nicholas Wanted to Take an Important Customer to a Hockey

question 64

Multiple Choice

Nicholas wanted to take an important customer to a hockey game in 2017. Although the face value of a ticket was only $50, the only way he could get tickets was by paying a scalper $160 for each ticket. Assuming all other deductibility requirements are met, how much could Nicholas deduct for each ticket in 2017?

• A) $0
• B) $25
• C) $50
• D) $80
• E) $160

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Definitions:

Macroeconomic Events

Large-scale economic events that affect the economy on a national or global level, such as inflation, unemployment, or fiscal policies.

Unsystematic Risk

The segment of risk that is unique to a specific company or industry, also known as diversifiable risk, which can be mitigated through diversification.

Diversification

Spreading a portfolio over many investments to avoid excessive exposure to any one source of risk.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.