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

---

Definitions:

Participant Observation

A qualitative research methodology where the researcher immerses themselves within a community or group to observe behaviors and interactions directly.

Unobtrusive

Characterized by not attracting attention; inconspicuous or not aggressive in nature.

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts or evidence.

Agenda-Setting Theory

A communication theory that suggests the media has the power to influence the public's perception of what topics are important.