To Robert (a key client) at Christmas $50 - $25 deductible
To Angel (Robert's 8-year old daughter) on her birthday 20 - not deductible personal gift.
To Art (Ralph's secretary) on his birthday ($3 was for gift wrapping) 30 - $28 deductible ($25 limit per person plus Incidental costs(packaging) are generally not included in determining the cost of a gift for purposes of the $25 limit.
To Paige (Ralph's boss) at Christmas 40 - $25 deductible
Presuming proper substantiation, Ralph's deduction is:
2. None of the above.