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_29. G operates his own public accounting firm in Los Angeles (i.e., he is self-employed). K, an accounting professor at UCLA, often refers prospective clients
_29. G operates his own public accounting firm in Los Angeles (i.e., he is self-employed). K, an accounting professor at UCLA, often refers prospective clients to G, as well as students who might be good employees. Which of the following statements is true (disregard any % limitations)? a. G gave K two tickets to the Dodger game worth a total of $100 for his referrals during the year. All or a portion of the cost of the tickets is deductible as an entertainment expense even though he does not accompany K to the game and discuss business. b. G met K downtown for lunch. They discussed some prospective clients, then played tennis. G may deduct the cost of the lunch but not the cost of playing tennis. G takes K to sail on his boat. G never gets on his boat without a business associate. G may deduct the depreciation on the boat. d. More than one but less than all the statements above are true. e. None of the statements above is true. c. 30. D owns and operates her own real estate business. She loves to entertain. Indicate which of the following statements is true. a. D takes her new neighbor to the ball game. The expense is deductible, assuming D's entertainment expense creates goodwill that may lead the individual to become D's client if, and when, he decides to sell his house. b. D takes a prospective client to the theater. Assuming they have a business discussion before the show, D can deduct the cost of the tickets. D holds a golf outing for all her employees. D may deduct the expense, assuming it is primarily for her employees. d. More than one but less than all the statements above are true. e. None of the statements above is true. c. c
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