Brian Makes Gifts as Follows

question 119

Essay

Brian makes gifts as follows:
Recipient
Cost of Gift
Mr.Brown (a client)
$27
*
Mrs.Brown (Mr.Brown's wife)
15
Ms.Smith (Brian's receptionist)
30
Mr.Jones (Brian's boss)
40
​
* Includes $2 for gift wrapping
​
Presuming adequate substantiation and no reimbursement,how much may Brian deduct?

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Definitions:

Disbursements

The act of paying out money from a fund or account, typically for expenses or investments.

Financing

The process of providing funds for business activities, making purchases, or investing, which can come through various means like loans, equity investments, or credits.

Cash Disbursements

Outflows of cash for expenses, asset acquisitions, or other payments by a business during a specific period.

Operating Expenses

Recurring expenses related to the normal operations of a business, such as salaries, rent, and utilities.