Which of the following correctly states the proper tax treatment for the situation presented?

a. A sole proprietor gives a business client four tickets to a sporting event, but does not attend the event. Each ticket costs $40. The taxpayer deducts $80 (50% of the $160 cost of the four tickets) as a business gift.

b. A sole proprietor takes his client to a sporting event. The cost of each ticket is $30. The taxpayer treats the cost of the client’s ticket as a gift, and the cost of his own ticket as an entertainment expense. His total deduction is limited to $40 ($25 for the gift and

$15 for entertainment).

c. A sole proprietor takes his client to a sporting event. The cost of each ticket is $60. The taxpayer treats the tickets as an entertainment expense, but he can only deduct $30, which is 50% of the cost of the client’s ticket.

d. A sole proprietor gives a business client two tickets to a sporting event, but does not attend the event. Each ticket costs $20. The taxpayer can treat the tickets as a gift, but can only take a deduction for $25.