Telephone Expense Allocation

Steps:

• Identify total telephone expenses and usage split between business and personal calls.
• Calculate business portion by dividing business minutes by total minutes.
• Multiply business percentage by total expenses to find deductible amount.
• Verify against tax rules for accurate allocation.

Why B is correct:

• Matches IRS guidelines requiring proportional allocation based on usage logs for deductible business expenses.

Why the others are wrong:

• A: Ignores personal usage, overstating deduction per tax code.
• C: Uses flat 50% split without evidence, violating documentation rules.
• D: Excludes all expenses, missing legitimate business portion under revenue laws.

Not enough information for precise calculation without usage details.

Final answer: B