Steven Is a Representative for a Textbook Publishing Company

question 56

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:

Hierarchical Model

A way of organizing objects, ideas, or information in a structure where items are ranked according to levels of importance or authority.

Correlation Coefficients

Statistical measures that indicate the extent to which two or more variables fluctuate together.

Theoretical Entity

Concepts or things that are assumed to exist to rationalize, explain, or predict phenomena, although they may not be directly observable.

Frontal Cortex

a region of the brain located in the front part of the cerebral cortex, involved in decision making, problem solving, conscious thought, and social behavior.