John Is a Self-Employed Computer Consultant Who Lives and Works

question 80

Multiple Choice

John is a self-employed computer consultant who lives and works in Dallas.John paid for the following activities in conjunction with his business.Which of the following expenditures is not deductible in any amount? 1.Dinner with a potential client where the client's business was discussed.
2) A trip to Houston to negotiate a contract.
3) A seminar in Houston on new developments in the software industry.
4) A trip to New York to visit a school chum who is also interested in computers.

• A)1 only.
• B)2 only.
• C)3 only.
• D)4 only.
• E)None of the choices are correct.

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Definitions:

Depreciation Expense

The distribution of a physical asset's cost across its life of utility.

Six-month Note

A short-term debt instrument that matures or is due to be paid back within a six-month period.

Cash Flow Per Share

A financial metric that measures a company’s cash inflow generated per share over a certain period.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.