Gayle,a Doctor with Significant Investments in the Stock Market,traveled on a Cruise

question 88

Multiple Choice

Gayle,a doctor with significant investments in the stock market,traveled on a cruise ship to Bermuda.Investment specialists provided daily seminars which Gayle attended.The cost of the cruise for four days is $2,500.Gayle can deduct (before application of any floors)

• A)$0.
• B)$1,250.
• C)$2,000.
• D)$2,500.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Accrued Interest

The interest that has been earned but not yet paid, accumulating on loans, bonds, or any other financial instruments over a period of time.

Notes Receivable

Financial assets representing amounts owed to a company by debtors, typically evidenced by formal instruments with specified payment terms.

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.