Steven Is a Representative for a Textbook Publishing Company

question 10

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 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:

Solomon Asch

A psychologist known for his research on conformity, demonstrating how group pressure can influence an individual to conform.

Familiarity Effect

A phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Just-World Effect

The cognitive bias to believe that the world is fundamentally fair, leading people to rationalize an undeserved, negative experience by the victim.