Steven Is a Representative for a Textbook Publishing Company

question 129

Multiple Choice

Steven is a representative for a textbook publishing company. Steven attends a convention which will also be attended by many potential customers. During the week of the convention, Steven incurs the following costs in entertaining potential customers. Having recently been to a company seminar on the new tax laws, Steven makes sure that business is discussed at the various dinners, and that the entertainment is on the same day as the meetings with customers. Steven is reimbursed $2,000 by his employer under an accountable plan. Steven's AGI for the year is $50,000, and while he itemizes deductions, he has no other miscellaneous itemized deductions. What is the amount and character of Steven's deduction after any limitations?

• A)$500 from AGI
• B)$500 for AGI
• C)$2,000 from AGI
• D)$2,000 for AGI

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Definitions:

Ohio River

A major river in the United States that flows southwesterly from western Pennsylvania to the Mississippi River, serving as a natural boundary and important transportation route historically.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was eventually replaced by the U.S. Constitution in 1789 due to its weaknesses.

National Control

The exertion of governmental authority and regulation over a nation's affairs, including its economy, security, and laws.

Tax Policy

The government's approach to taxation, involving the setting of tax rates and the determination of who bears the burden of taxes, aimed at funding public expenditures, influencing economic conditions, and redistributing income.