Question

Brenda, a self-employed taxpayer, travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including 2 days of travel) during which time she spends 5 days conducting business and 3 days sightseeing. Her expenses are $2,370 (airfare), $260 per day (meals), and $540 per night (lodging). Because Brenda stayed with relatives while sightseeing, she only paid for 5 nights of lodging. Compute Brenda's deductions for the following:

Answer 1

A. $1,659

B. $910

C. $2,700

Step-by-step explanation:

Calculation to determine Brenda's deduction

a. Airfare= (70% × $2,370)

Airfare=$1,659

b. Meals=[(260/2)*7

Meals=$910

c. Lodging= [540*5]

Lodging=$2,700

Therefore Brenda's deductions are :

Airfare $1,659

Meals $910

Lodging $2,700