Question

During the year, John went from Milwaukee to Alaska on business. Preceding a five-day business meeting, he spent four days vacationing at the beach. Excluding the vacation costs, his expenses for the trip are:


Air fare $3,200


Lodging 900


Meals 800


Entertainment 600


Presuming no reimbursement, deductible expenses are:?


a. $3,200.


b. $3,900.


c. $4,800.


d. $5,500.


e. None of these.

Answer 1

Answer:

e. None of these.

Explanation:

John's expenses on the trip;

Air fare = $3,200

Lodging = $900

Meals = $800

Entertainment = $600

Of all the expenses incurred by John, only the expense on entertainment is a non-deductible expense. A such,

Total deductible expense = $3,200  + $900  + $800

                                           = $4,900

Hence, the right option is  e. None of these.