Ed is a self-employed heart surgeon who has incurred the following reasonable expenses:$1,000 in air fare to repair investment rental property in Colorado. ; $500 in meals while attending a medical convention in New York; $300 for tuition for an investment seminar "How to pick stocks."; $100 for tickets to a football game with hospital administrators to celebrate successful negotiation of a surgical contract earlier in the day.How much can Ed deduct?A. $1,300 "for AGI."B. $1,300 "for AGI" and $300 "from AGI."C. $480 "for AGI."D. $80 "for AGI" and $1,300 "from AGI."E. None of these.

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andromache andromache · Answer 1 · 2019-10-23T09:52:46+02:00

Answer:

A. $1,300 "for AGI.

Explanation:

The computation of the deductible amount is shown below:

= Air fare to repair investment rental property + 50% × (Meals + tickets to a football game with hospital administrators)

= $1,000 + 50% × ($500 + $100)

= $1,000 + $300

= $1,300

For meals and tickets, 50% deduction is applicable whereas for the air fair full deduction is applicable

And, for investment in seminar no deduction is allowed