Allowing for the Cutback Adjustment (50% Reduction for Meals and Entertainment)

question 104

Multiple Choice

Allowing for the cutback adjustment (50% reduction for meals and entertainment) , which of the following trips, if any, will qualify for the travel expense deduction?

• A)Dr.Jones, a general dentist, attends a two-day seminar on developing a dental practice.
• B)Dr.Brown, a surgeon, attends a two-day seminar on financial planning.
• C)Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills.
• D)Myrna went on a two-week vacation in Boston.While there, she visited her employer's home office to have lunch with former co-workers.
• E)None of the above.

---

Definitions:

Joint Venture Investment Account

An account that records the initial and ongoing financial contributions made by the partners of a joint venture, adjusted for their share of profits, losses, and distributions.

Transfer of Assets

The act of moving resources or property from one entity to another, which may involve financial, physical, or intangible assets.

Deferred Exploration Expenditure

Costs incurred in exploratory activities in mining and oil and gas companies that are capitalized as an asset on the balance sheet until the resources are found to be economically viable.

Sundry Assets

Miscellaneous assets on a company’s balance sheet that do not neatly fit into other asset categories, often of minor value.