Olga Is a Technical Sales Consultant for Interactive Systems Corporation

question 135

Short Answer

Olga is a technical sales consultant for Interactive Systems Corporation (ISC)based in San Diego.While on business in Boise,she entertains several clients at a cost of $600.When she returns to San Diego,Olga gives ISC receipts and other information to account for the entertainment expense.ISC reimburses Olga $600.How much can Olga and ISC deduct?
$\begin{array}{ll}\text { Olga } & \text { ISC } \\a.\$-0- & \$-0- \\b.\$-0- & \$ 300 \\c.\$-0- & \$ 600 \\d.\$ 300 & \$-0- \\e.\$ 600 & \$ 300\end{array}$

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Definitions:

After-Tax

The amount of income or profit remaining after all taxes have been deducted.

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments.

Cash Flows

The comprehensive total of finances being transferred within and outside a business, affecting its ability to quickly convert assets to cash.

Erosion

The gradual wearing away or removal of land or material by natural forces such as wind, water, or ice.