During the current year holiday season, Palo Corp. gave business gifts to seventeen customers. These gifts, which were not of an advertising nature, had he following fair market values:
- 4 at $10
- 4 at $25
- 4 at $50
- 5 at $100
How much of these gifts was deductible as a business expense for the current year?
a. $840
b. $365
c. $140
d. $0
Answer: B
CPA Exam
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