Tom operates a talent agency as a sole proprietorship. This year he paid the following expenses in connection with the operation of the agency.

50 lunches with current clients	$ 4,000
10 meals with potential clients	1,000
50 green fees to play golf with clients	6,000
10 gift baskets costing $100 given to 10 clients	1,000
1 wedding reception for Ted's daughter; guests included 10 clients	10,000

What amount of the above expenses may Tom deduct (after any limitations)?

$2,750

$2,500

$5,250

$5,000

$0