Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam’s deduction for business gifts.

Donee Amount Amount Allowed Ms. Sears (a client) $35, plus $4 shipping $

Mr. Williams (a tennis partner, not a business prospect or client)

55 Mr. Sample (a client) 22 Mrs. Sample (nonclient wife of Mr. Sample)

20 Various customers (calendars costing $3 each with the company name on them)

300 Mr. Shiver (an employee gift, a watch, for 25 years of continuous service)

175 Total business gift deduction $