Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Amount Donee Aтount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping 2. Mr. Williams (a tennis partner, 55 not a business prospect or client) 3. Mr. Sample (a client) received $22 and Mrs. Sample (nonclient spouse of Mr. Sample) 42 received a gift valued at $20 4. Various customers (calendars 300 costing $3 each with the company name on them) 5. Mr. Shiver (an employee gift, 175 a watch, for 25 years of continuous service) Total business gift deduction
Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Amount Donee Aтount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping 2. Mr. Williams (a tennis partner, 55 not a business prospect or client) 3. Mr. Sample (a client) received $22 and Mrs. Sample (nonclient spouse of Mr. Sample) 42 received a gift valued at $20 4. Various customers (calendars 300 costing $3 each with the company name on them) 5. Mr. Shiver (an employee gift, 175 a watch, for 25 years of continuous service) Total business gift deduction
Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions
Section: Chapter Questions
Problem 22P
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Question
Transcribed Image Text:Sam owns an insurance agency and makes the following business gifts during the year.
Calculate Sam's deduction for business gifts.
If an amount is zero, enter "0".
Аmount
Donee
Amount
Allowed
1. Ms. Sears (a client)
$35, plus $4 shipping
2. Mr. Williams (a tennis partner,
55
not a business prospect or client)
3. Mr. Sample (a client) received $22 and
Mrs. Sample (nonclient spouse of Mr. Sample)
42
received a gift valued at $20
4. Various customers (calendars
300
costing $3 each with the company name on them)
5. Mr. Shiver (an employee gift,
175
a watch, for 25 years of continuous service)
Total business gift deduction
Expert Solution
Step 1
Business gifts refers to the distributed items by a business entity to their clients, potential customers and employees as tactic to increase business or as good gesture. It is an expenditure for business entity and can be adjusted in gross income in tax calculation provided by rules of IRS.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT