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John Is a Self-Employed Computer Consultant Who Lives and Works

question 93

Multiple Choice

John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction with his business. Which is not deductible in any amount?
1) Dinner with a potential client where the client's business was discussed.
2) A trip to Houston to negotiate a contract.
3) A seminar in Houston on new developments in the software industry.
4) A trip to New York to visit a school chum who is also interested in computers.


Definitions:

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand dynamics.

Total Product

The total quantity of goods or services produced by a firm or economy at a given time.

Profit-Maximizing Output

The level of production that maximizes a firm’s profits, determined by the intersection of marginal cost and marginal revenue.

Total Revenue

The total income earned by a firm from selling its products or services, calculated as the quantity sold multiplied by the selling price.

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