For each of the following situations, explain whether a deduction should be allowed for entertainment expenses:
a. Neil owns a real estate agency and has an annual Christmas party at his house. The party is only for employees of his firm, and costs $2,600.
b. Carol is a personal financial planner. Over the years, she has made it a practice to invite her best clients to lunch on the client's birthday. At the lunch, she always makes it a point to ask about any major changes in the client's financial status that she should be aware of. However, most of the conversation relates to per- sonal matters. During the year, Carol spends $850 on these lunches.
c. Vijay is a doctor at a local hospital. Every month, he buys lunch at the hospital for the six residents and interns who assist him in surgery and caring for his patients. The lunches cost $240 for the year.
d. Tom, Hillary, and George are friends from college who live and work in the Dal- las metropolitan area. They are all stockbrokers for different firms and get to- gether twice a month for lunch to exchange rumors concerning the stock market. In addition, they catch up on personal news and make plans to get together with their spouses and other friends. Last year, George made $50,000 for a client based on a tip he received from Hillary at one of their meetings. Each stockbroker pays for his or her own lunch, and during the year, George paid $320.