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Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her entertainment expenses for her clients include

Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her entertainment expenses for her clients include the following:

Cab fare to and from restaurants $ 520
Gratuity at restaurants 470
Meals 4,850
Cover charges 420

Jackie also held a holiday party for her employees, which cost $1,840. All expenses are reasonable.

How is the deduction classified?

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