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Taxation Memorandum


Carol and Jerry, LLP, pays the Good Eats Cafe each month for the lunches the two accountants eat there each work day. While at lunch, Carol and Jerry always discuss some business. Often Carol and Jerry invite friends who work at another CPA firms to join them, so they can keep up with what is happening in the accounting community. Are these meals deductible?

Develop a tax file memorandum for a client based on the information in scenario above.

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Solution Preview

The problem with this scenario is that we have the use of the word "some." While at lunch, the two accountants discuss "some" business. They also invite friends at times, who are colleagues, so they can "keep up with what is happening." Due to the way that this ...

Solution Summary

This solution explains how the student should develop a memorandum for the client based on the information in the tax scenario given. The issues are identified and the related tax laws are discussed.