Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. holly paid $290 for the meal and $250 for the theatre tickets, amounts that were reasonable under the circumstances. what amount of these expenditures can holly deduct as a business expense? which of the following expenditures is least likely to be deductible for a construction business?

The answers are:

Explanation:

You can deduct ordinary and necessary expenses from your business income.

Ordinary expenses are expenses commonly paid by other taxpayers in your same industry.

Necessary expenses considers things that you need to pay in order to do business.

Some expenses can only be deducted partially even if they are ordinary and necessary, like having meals with your clients. You can deduct up to 50% of what you paid for the meal ($290 x 50% = $145)

With the introduction of the 2017 Tax Reform Law theater tickets are no longer deductible expenses, the same with most entertainment expenses that used to be deductible.

answer; ///global;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.