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: Presuming no reimbursement,deductible expenses are:

Question

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:  Presuming no reimbursement,deductible expenses are:

Quizplus · Accepted Answer

The deductible expenses are the expenses related to the business portion of the trip. Since John spent 4 days vacationing before the business meeting, those expenses cannot be deducted. Therefore, the deductible expenses are calculated based on the remaining 11 days of the trip. According to the IRS, deductible expenses for business travel include transportation, lodging, meals, and other incidental expenses. Assuming John followed IRS guidelines, his expenses would be:

- Transportation: Unknown
- Lodging: 11 days x $150 per day = $1,650
- Meals: 11 days x $75 per day = $825
- Other incidental expenses: Unknown

Adding up the known expenses, we get $1,650 + $825 = $2,475. We do not know the cost of transportation or any other incidental expenses, so the total deductible expenses could be higher than $2,475. However, only choice C is higher than $2,475, so it is the best option.

During the Year,John Went from Milwaukee to Alaska on Business