Sarah Incurred Employee Business Expenses of $5,000 Consisting of $3,000

question 146

Multiple Choice

Sarah incurred employee business expenses of $5,000 consisting of $3,000 business meals and $2,000 customer entertainment.She provided an adequate accounting to her employer's accountable plan and received reimbursement for one-half of the total expenses.How much of the meals and entertainment will be deductible by Sarah without consideration of the 2% of AGI limit?

• A)$0
• B)$1,250
• C)$2,500
• D)$5,000

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Definitions:

Vasocongestion

Engorgement of blood vessels with blood, which swells the genitals and breasts during sexual arousal.

Genital Tissues

Tissues that make up the reproductive organs in both males and females, involved in sexual reproduction and function.

Erection

The physiological process where the penis becomes firm and enlarged, typically as a result of sexual arousal.

Vasoconstriction

The narrowing of the blood vessels which results in increased blood pressure.