Tracy, the Regional Sales Director for a Manufacturer of Exercise

Multiple Choice

Tracy, the regional sales director for a manufacturer of exercise equipment, pays $2,500 to rent a skybox for a visiting performance of the Harlem Globetrotters. The skybox holds 10 seats, and Tracy invites 7 clients to the event. Nonluxury seats range in price from $80 to $120. The refreshments provided during the event cost $600. If Tracy meets all of the requirements for deductibility (i.e., business discussion, substantiation) , she may deduct:

A) $900.
B) $1,100.
C) $1,260.
D) $1,500.
E) $1,550.