Robert Entertains Several of His Key Clients on January 1

question 131

Multiple Choice

Robert entertains several of his key clients on January 1 of the current year. Expenses paid by Robert are as follows:
$\begin{array}{ll}\text { Cab fare } & \$ 60 \\\text { Cover charge at supper club } & 200 \\\text { Dinner at club } & 800 \\\text { Tips to waiter } & 160\end{array}$
Presuming proper substantiation, Robert's deduction is:

• A) $610.
• B) $640.
• C) $740.
• D) $1,220.
• E) None of the above.

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Definitions:

Common Shares

Equity securities representing ownership interests in a corporation, providing voting rights and entitling shareholders to a share of the company's profits via dividends.

Share Capital

The total amount of funds raised by a company through the issuance of shares to shareholders, representing ownership in the company.

Retained Earnings

The portion of a company's profit that is kept or retained within the company, not distributed to shareholders as dividends.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.