Question

During the year, Dagney went from New Orleans to Barcelona (Spain) on business. She spent four days on business, two days on travel, and four days on vacation. Disregarding the vacation costs, Dagney's unreimbursed expenses are:Air fare $3,000

Lodging $800
Meals $600
Entertainment $400
Dagney's deductible expenses are:
a. $2,800
b. $3,100
c. $2,500
d. $4,300
e. None of these choices are correct."

Answer 1

Dagney's deductible expenses are a total of $4,800.

Step-by-step explanation:

To calculate Dagney's deductible expenses, we need to subtract the vacation costs from her total expenses. The vacation costs are not deductible. So, the deductible expenses are: Air fare ($3,000) + Lodging ($800) + Meals ($600) + Entertainment ($400) - Vacation costs ($0) = $4,800. Therefore, the correct choice is (e) None of these choices are correct.