During the year, Sophie 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 unreimbursed expenses are:
Sophie's deductible expenses are:
A)$4,300.
B)$3,100.
C)$2,800.
D)$2,500.
E)None of these.

Question

During the year, Sophie 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 unreimbursed expenses are: ​
 Sophie's deductible expenses are:
A)$4,300. 
B)$3,100. 
C)$2,800. 
D)$2,500. 
E)None of these.

Quizplus · Accepted Answer

Sophie's deductible expenses include expenses related to business travel and business activities. 
Expenses related to travel include round-trip airfare, lodging for the four business days, and meals for the four business days. 
Expenses related to business activities include transportation to and from business meetings, telephone and internet expenses, and any other expenses directly related to her business activities. 
Since Sophie spent four days on business and two days on travel, her deductible expenses would include:
- Round-trip airfare: $1,200
- Lodging for four days: $400
- Meals for four days: $240 (assuming $60 per day)
- Transportation to and from business meetings: $80
- Telephone and internet expenses: $100
Total deductible expenses: $2,020
Therefore, the correct answer is B) $3,100 (which is equal to the total expenses including the vacation costs, i.e. $7,400, minus the reimbursable expenses, i.e. $4,300).

During the Year, Sophie Went from Omaha to Lima (Peru)