Sarah Incurred Employee Business Expenses of $5,000 Consisting of $3,000

Multiple Choice

Sarah incurred employee business expenses of $5,000 consisting of $3,000 business meals and $2,000 customer entertainment.She provided an adequate accounting to her employer's accountable plan and received reimbursement for one-half of the total expenses.How much of the meals and entertainment will be deductible by Sarah without consideration of the 2% of AGI limit?

A) $0
B) $1,250
C) $2,500
D) $5,000