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87. Eloise is a sales representative for a video productioncompany. While at an exposition, she incurs $2,000 in entertainmentexpenses and $1,200 for meals. The expenses occur while she isdiscussing business and Eloise makes an adequate accounting to heremployer and is reimbursed $1,200. How much may Eloise deduct ifher AGI is $40,000? a. $- 0 - b. $1,200 for AGI and $200 from AGI. c. $1,200 for AGI and $2,000 from AGI. d. $- 0 - for AGI and $200 from AGI. e. $- 0 - for AGI and $1,000 from AGI. ANSWER:   b

88. Brees Co. requires its employees to adequately account forall reimbursed business expenses. Tracy, an employee of Brees Co.has AGI of $50,000 and submitted for reimbursement the followingvalid business expenses: Transportation costs $1,000 Meals 700 Entertainment costs 500 Hotel costs 800 ? What are the tax consequences if Brees reimburses Tracy$2,400? I. Tracy must report $2,400 of income. II. Tracy can deduct $2,400 of the expenses for AGI and $-0- asmiscellaneous itemized deductions, after limitations. ? a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct. ANSWER:   c The questions are from test bank 2016. With the current tax law,are these answers still correct?? I want to know the updatedanswers, thanks!