Question

Exercise 9-19 (Algorithmic) (LO. 3) 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 $1,930 (airfare), $245 per day (meals), and $420 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. $1,351

b. $857.5

c. $2,100

Step-by-step explanation:

Computation for Brenda's deductions

a. Airfare= (70% × $1,930)

Airfare=$1,351

b. Meals= [(245/2)*7]

Meals=857.5

c. Lodging= [420*5]

Lodging=$2,100

Therefore Brenda's deductions are:

a. $1,351

b. $857.5

c. $2,100