LO.6 Snipe Associates paid $70,000 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $80 to $200 each.

At one game, an employee of Snipe entertained 18 clients. Snipe furnished food and beverages for the event at a cost of $1,000. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated.

a. How much may Snipe deduct for this event?

b. What, if any, is the deduction if no representative from Snipe attended the game?

c. What if there was no bona fide business discussion either before or after the event?