1. A calendar-year corporation incurs $53,000 of start-up costs. If the corporation began business on August 1 of the current year, what is the maximum amount of the start-up costs that it can deduct against business income in the current year? (round your answer to the nearest dollar)

A) $3,417

B) $5,000

C) $2,000

D) $6,333

E) none of the above

2. A self-employed attorney uses a country club to entertain clients and spends the following amounts at the club: Annual dues $1,000 Personal meals 1,500 Business meals 2,500 What amount can the attorney deduct against business income on his personal tax return?

A) $0

B) $1,250

C) $1,750

D) $2,250

E) $2,500

3. Deductions for business gifts are limited to what amount per individual each year?

A) $25

B) $250

C) $2,500

D) None of the above