Problem 3-12 Meals and Entertainment (LO 3.5)

Grace is a self-employed sales consultant who spends significant time entertaining potential customers. She keeps all the appropriate records to substantiate her entertainment. She has the following expenses in the current year:

Restaurant meals $5,000 Greens fees (all business) 500 Tickets to baseball games (all business) 500 Country Club dues (all business use) 6,000

What is the tax-deductible entertainment expense Grace may claim in the current year? On which tax form should she claim the deduction?