Waldo, a Sole Proprietor, Bought Two Tickets for a Packers

question 28

Multiple Choice

Waldo, a sole proprietor, bought two tickets for a Packers game on Ebay for $400.The tickets had a face value of $50 each.He took a client to the game and they had a dinner afterwards where they discussed business.The cost of the dinner was $70.What is Waldo's deduction for these expenses if they were incurred in 2019?

• A)$470
• B)$235
• C)$85
• D)$35

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Definitions:

Common Shares

Common Shares are units of ownership in a company that entitle the shareholders to vote at shareholders' meetings and receive dividends.

EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Financial Strength

A measure of a company’s ability to meet its financial commitments, indicating its overall financial stability.

International Financial Reporting Standard

A set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.