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:

American West

A region of the United States characterized by its frontier history, encompassing the period of westward expansion.

Natural Resources

Physical materials originating from the earth that are valuable and necessary for humans, including water, minerals, and forests.

Pacific Trade

Trade routes and economic exchanges across the Pacific Ocean, which play a significant role in global commerce, linking Asia with the Americas.

Comstock Lode

A significant discovery of silver ore made in Nevada in 1859, which sparked a silver rush and contributed to the development of the western United States.