Answer:
Total deduction= $680
Explanation:
Deductions:
Deductions are a source of revenues and expenses that a person can deduct from the annual gross income before calculating the annual gross income. after deductions, the taxable income gets reduced which ultimately results in fewer taxes.
Answer and Explanation:
Calculate the amount of deduction as shown below:
Details Amount
Limo charges $200
Add: Cover charge (50% cutback adjustment)
($120*50%) $60
Add: Drinks and Dinner (50% cutback adjustment)
($700*50%) $350
Add: Tips to servers (50% cutback adjustment)
($140*50%) $70
Total deduction $680
