Choice "A" is correct. Business gifts are deductible up to a maximum deduction of $25 per recipient per year.Computation:
5 x lesser of (i) $15 value of each gift or (ii) $25 maximum per recipient per year | $ 75 |
9 x lesser of (i) $30 value of each gift or (ii) $25 maximum per recipient per year | 225 |
1 x lesser of (i) $100 value of the gift or (ii) $25 maximum per recipient per year | 25 |
Amount deductible for business gifts | $ 325 |
Choices "d", "b", and "c" are incorrect per the above rule and per the above computations.
