Werner is the president and CEO of Acme, Inc., and this year he took a prospective client to dinner. During the dinner Werner and the client discussed a proposed contract for over $6 million as well as personal matters. After dinner Werner took the client to a football game and no business was discussed. Werner paid $1,220 for an expensive (but not extravagant) dinner and spent $600 for tickets to the game. What is the deductible amount of these expenses?
What will be an ideal response?
$610 = 50% × ($1,220).
The meal is 50 percent deductible but the entertainment is not deductible.
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A) centralized authority and responsibility. B) its status as a separate legal entity. C) government regulation. D) continuous existence.
Answer the following statements true (T) or false (F)
Conservatism, materiality, and disclosure are examples of constraining principles.
Which of the following is/are true?
a. Trading securities can be classified as current or noncurrent depending on management's intent. b. Held-to-maturity securities should not be classified as current under any circumstance. c. Trading securities should not be classified as current under any circumstance. d. Available-for-sale securities can be classified as current or noncurrent depending on management's intent. e. None of these answer choices is correct.
Under Section 24 of the Securities Act of 1933, the maximum penalty is imprisonment for:
A) Ten years. B) One year. C) Two years. D) Five years. E) Twenty years.