To answer the question comprehensively, let's break down the problem step by step:
### Required A: How much of these expenses can Jackie deduct?
Jackie owns a temporary employment agency and incurs expenses in the course of her business. Here is a list of her expenses:
1. Cab fare to and from restaurants: [tex]$400
2. Gratuity at restaurants: $[/tex]350
3. Meals: [tex]$4,250
4. Cover charges: $[/tex]300
All these expenses are reasonable and, therefore, can be considered for deduction. Let's determine the sum of these expenses:
- Cab fare to and from restaurants: [tex]\( \$400 \)[/tex]
- Gratuity at restaurants: [tex]\( \$350 \)[/tex]
- Meals: [tex]\( \$4,250 \)[/tex]
- Cover charges: [tex]\( \$300 \)[/tex]
Summing these values gives us the total expenses:
[tex]\[
400 + 350 + 4250 + 300 = 5300
\][/tex]
Thus, the total amount Jackie can deduct is [tex]$5,300.
### Tabular Representation
To represent the expenses and the total deduction clearly in table format:
\[
\begin{array}{|c|c|}
\hline \text{Cab fare to and from restaurants} & \$[/tex]400 \\
\hline \text{Gratuity at restaurants} & \[tex]$350 \\
\hline \text{Meals} & \$[/tex]4250 \\
\hline \text{Cover Charges} & \[tex]$300 \\
\hline \text{Total deduction} & \$[/tex]5300 \\
\hline
\end{array}
\]
### Required B: How is the deduction classified?
These expenses are classified under business expenses. Business expenses are ordinary and necessary costs incurred in the operation of a business. Since Jackie's expenses for cab fare, gratuity, meals, and cover charges are all related to the business activities of her temporary employment agency, they are to be classified as deductible business expenses.
### Summary
- Total deductible expenses: $5,300
- Classification: Business expenses
Feel free to ask if you have any further questions or if anything remains unclear!
