6. The Amazing Zinn operates a sole proprietorship as a magician, and this year

Question

6. The Amazing Zinn operates a sole proprietorship as a magician, and this year he incurred the following expenses in his magician shows. What is the total deductible amount of these expenditures? $500 dinner with a film producer where no business was discussed $150 lunch with his lovely assistant Bambi where no business was discussed $200 business dinner with a client but Zinn did not keep any records $300 tickets to the Cirque du Soleil with a client following a business meeting a. $150 b. $250 C. $300 d. $450 e. $500 7. During 2017, Lori (age 12) received $3,200 from a corporate bond. She also received $700 from a savings account established for her by her parents, Lori's parents are in the 35% tax bracket. Lori lives with her parents and she is their dependent. What is the amount that will be taxed at Lori's parent's tax rate? a. $o b. $1,800 c. $3,800 d. $3,200 e. $2,800

Explanation / Answer

6. Answer is C. $300 as these are business expenditur eallowed

7. Answer is A. $0 as both income are tax free in the hand of assessee.

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