1. Under current law, unreimbursed employment-related expenses of employees are:

A) Not allowed as trade or business tax deductions

B) Always deductible for AGI

C) Limited to two percent of AGI

D) Allowed as trade or business tax deductions

2. "Depletion" is defined as:

A) the taxpayer's use and reduction of natural resources.

B) the method by which the cost of natural resources is recovered.

C) the deduction taken to recover the costs of regulating the use of natural resources.

D) none of the above.

3. During the holiday season, a taxpayer gives business gifts to 25 customers. The gifts have the following fair market values:

7 gifts of property valued at $10 each

5 gifts of property valued at $20 each

13 gifts of property valued at $50 each

How much can the taxpayer deduct for business gifts?

A) $312.50

B) $495.00

C) $625.00

D) $247.00