Edward incurs the following moving expenses: The employer reimburses Edward for the full $10,000.What is the amount to be reported as income by Edward?
A)$0
B)$4,000
C)$6,000
D)$10,000

Question

Edward incurs the following moving expenses:  The employer reimburses Edward for the full $10,000.What is the amount to be reported as income by Edward?
A)$0 
B)$4,000 
C)$6,000 
D)$10,000

Quizplus · Accepted Answer

C)Only the $4,000 direct moving expenses are allowed against the $10,000 reimbursement.Therefore,Edward must report income in the amount of the excess reimbursement of $6,000 ($10,000 - $4,000).

Edward Incurs the Following Moving Expenses: the Employer Reimburses