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 $1,500 (airfare), $200 per day (meals), and $400 per night (lodging). Because Brenda stayed with relatives while sightseeing, she only paid for 5 nights of lodging. What is Brenda's deduction for: If required, round your answers to the nearest dollar.

Answer 1

Airfare $1,050

Meals $700

Lodging $2,000

Step-by-step explanation:

Calculation to determine Brenda's deduction

a. Calculation to determine Brenda's deduction for Airfare

Airfare=(70% × $1,500)

Airfare=$1,050

Therefore Brenda's deduction for Airfare is $1,050

b.Calculation to determine Brenda's deduction for Meals

Meals=[(200/2)*7]

Meals=$700

Therefore Brenda's deduction for Meals is $700

c.Calculation to determine Brenda's deduction

for Lodging

Lodging= [400*5]

Lodging=$2,000

Therefore Brenda's deduction

for Lodging is $2,000