Answer:
$300 is allowable deductions
Explanation:
Carol was on a business Tour and the expenses incurred during the meeting are only allowable under the US tax rules, if the tour's main purpose is to benefit the company's business and that the expenses immaterial. So in this case, Carol was out with one of the business client to negotiate the terms and condition or the part of the agreed contract between the two parties which in this case is the ongoing project. So it is proved that the meeting was for professional in terms and the expenses incurred to entertain the client and the employee himself are $180 and $120 are immaterial and equally shared among both.
The whole of the amount $300 ($180 + $120) are allowable under tax rules.
