The variance of an activity is given by:

A) [1/6(b-a)]2.
B) 1/6[b-a].
C) [1/36(b-a)]2.
D) 1/36[b-a].

A

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John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction with his business. Which is not deductible in any amount?

1. Dinner with a potential client where the client's business was discussed. 2. A trip to Houston to negotiate a contract. 3. A seminar in Houston on new developments in the software industry. 4. A trip to New York to visit a school chum who is also interested in computers. A. 1 only. B. 2 only. C. 3 only. D. 4 only. E. None of these.

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Retained earnings are revenue minus expenses in a business

A. True B. False

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