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Question - Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her expenses for her clients include the following:
Cab fare to and from restaurants $520
Gratuity at restaurants 470
Meals 4,850
Cover charges 420
Jackie also held a holiday party for her employees, which cost $1,840. All expenses are reasonable.
Required -
1. How much can Jackie deduct from these expenses?
2. How is the deduction classified?
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