During the year, Sophie (a self-employed marketing consultant) went from Omaha to Lima, Peru, on business.She spent four days on business, two days on travel, and four days on vacation.Disregarding the vacation costs, Sophie's expenses are: $$\begin{array} { l r }
\text { Airfare } & \$ 3,000 \
\text { Lodging } & 800 \
\text { Meals } & 600 \
\text { Entertainment } & 400
\end{array}$$ Sophie's deductible expenses are:
A)$4,300.
B)$2,900.
C)$2,800.
D)$2,500.
E)None of these.

Question

During the year, Sophie (a self-employed marketing consultant) went from Omaha to Lima, Peru, on business.She spent four days on business, two days on travel, and four days on vacation.Disregarding the vacation costs, Sophie's expenses are: $$\begin{array} { l r } 
\text { Airfare } & \$ 3,000 \
\text { Lodging } & 800 \
\text { Meals } & 600 \
\text { Entertainment } & 400
\end{array}$$ Sophie's deductible expenses are:
A)$4,300.
B)$2,900.
C)$2,800.
D)$2,500.
E)None of these.

Quizplus · Accepted Answer

Sophie's deductible expenses include the airfare ($3,000), lodging for the business days ($800 for 4 business days), and meals for the business days ($600 for 4 business days). Entertainment expenses are typically not deductible for tax purposes. Thus, the deductible expenses are airfare ($3,000) + lodging ($800) + meals ($600) = $4,400. However, since meals are only 50% deductible, the meals deduction is $300 (50% of $600), making the total deductible expenses $3,000 (airfare) + $800 (lodging) + $300 (meals) = $4,100. The correct answer, $2,900, seems to be a miscalculation based on the information provided. Given the error in calculation in the provided options, the correct approach would be to deduct the full amount for airfare, lodging for the business days, and 50% of the meals for the business days, excluding entertainment. However, none of the options accurately reflects this calculation, suggesting a possible misunderstanding in the question's premise or a mistake in the answer choices provided.

During the Year, Sophie (A Self-Employed Marketing Consultant) Went from Omaha