Response to the following:
1. Business Gifts.
Dabny operates his business as a sole proprietorship. During the year, he sends holiday gifts to 20 of his clients. Each gift cost $55. What amount can Dabny deduct as business gifts on Schedule C?
2. Business Gifts and Entertainment
Stu is self-employed. During the year, Stu paid $60 for a concert ticket. He gave the ticket to a client.
a. What amount can Stu deduct on Schedule C if he did not attend the event with the client?
b. What amount can Stu deduct if he were to attend the event with his client?