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26 May, 18:25

During the year, John 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 800

Entertainment 600

Presuming no reimbursement, deductible expenses are:?

a. $3,200.

b. $3,900.

c. $4,800.

d. $5,500.

e. None of these.

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Answers (1)
  1. 26 May, 20:51
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    e. None of these.

    Explanation:

    John's expenses on the trip;

    Air fare = $3,200

    Lodging = $900

    Meals = $800

    Entertainment = $600

    Of all the expenses incurred by John, only the expense on entertainment is a non-deductible expense. A such,

    Total deductible expense = $3,200 + $900 + $800

    = $4,900

    Hence, the right option is e. None of these.
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