Jerry Recently Graduates with an MBA Degree from a Leading

question 89

Essay

Jerry recently graduates with an MBA degree from a leading university and will be going to work as an employee of a major stock brokerage firm. Jerry is unsure of the circumstances under which he can legitimately deduct the costs of entertaining and dining with clients and prospective clients. Jerry will spend approximately $5,000 a year on such activities for which he will not be reimbursed. It is important that he be able to derive tax benefit for these costs. Advise Jerry of the general rules in this area of the tax law. Include a brief discussion of substantiation requirements for such business expenses.

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Definitions:

Aggression Research

The study of factors and conditions that elicit aggressive behavior in individuals and how it can be managed or mitigated.

Aggressive Models

Individuals or representations that exhibit hostile or violent behavior, which can influence others through observational learning or imitation.

Live

To be alive, to exist, or to have life; can also refer to broadcasting or performing in real-time.

Social Learning Theory

A theory that suggests people learn new behaviors and information by watching and imitating others.