Question

Melissa recently paid $625 for round-trip airfare to San Francisco for a three-day business conference. She also incurred additional expenses: a $405 registration fee, $360 per night for lodging (for three nights), $280 for meals, and $240 for cab fare. If San Francisco is Melissa's permanent residence and business location, and she attended the conference in the city, drove 117 miles, and spent $625 for breakfast and dinner over the three days, what amount of these costs can Melissa deduct as business expenses?

a. $625
b. $1,000
c. $1,405
d. $1,890

Answer 1

Melissa can deduct $2,630 as business expenses.

Step-by-step explanation:

To determine the amount of business expenses Melissa can deduct, we need to add up all her expenses during the business conference.

The expenses she can deduct include the registration fee of $405, lodging expenses of $360 per night for three nights (totaling $1,080), meal expenses of $280, and cab fare of $240. We also need to include the cost of airfare, which is $625.

The total deductible expenses are $405 + $1,080 + $280 + $240 + $625 = $2,630.

Therefore, Melissa can deduct $2,630 as business expenses.