Question

During the year, John, a sole proprietor, went from Milwaukee to Alaska on business. Preceding a five-day business meeting, he spent four days vacationing at the beach. Excluding the vacation costs, his expenses for the trip are: Air fare $3,200 Lodging 900 Meals 1,400 (just meals, no entertainment value in these meals) Presuming no reimbursement, deductible expenses are: a. $3,200. b. $3,900. c. $4,800. d. $5,500. e. $0, unreimbursed business expenses are not deductible from 2018 - 2025

Answer 1

c. $4,800

Step-by-step explanation:

The computation of the deductible expense is shown below:

= Air fare expense + lodging expense + meals (50% deduction allowed)

= $3,200 + $900 + $700

= $4,800

We take 100% the actual expense of air fare and lodging expense and considered 50% of meals and according to this the total amount of deduction is calculated

hence, the correct option is c.