Question

During the current year holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows: 10 at $10 each 8 at $25 each 8 at $50 each 8 at $100 each For the current year, what is the amount of Bob's business gift deduction?

Answer 1

Answer:

$700

Explanation:

The amount that is deductible for business gifts is only 25 dollars maximum per person.

Bob gave 34 people gifts:

10x$10= $100

8x$25= $200

8x$25= $200

8x$25= $200

The total that Bob can deduct is $700 because each person's gift is limited to 25 dollars.