During the year, Peggy went from Nashville to Quito (Ecuador) on business.She spent four days on business, two days on travel, and four days on vacation.Disregarding the vacation costs, Peggy's unreimbursed expenses are: Peggy's deductible expenses are:

Question

During the year, Peggy went from Nashville to Quito (Ecuador) on business.She spent four days on business, two days on travel, and four days on vacation.Disregarding the vacation costs, Peggy's unreimbursed expenses are:  Peggy's deductible expenses are:

Quizplus · Accepted Answer

To calculate Peggy's deductible expenses, we need to consider the expenses incurred during her business trip and travel.

Expenses incurred during business trip = 4 days x $300 per day = $1200 
Expenses incurred during travel = 2 days x $200 per day = $400

Total unreimbursed expenses = $1200 + $400 = $1600

However, there are also additional expenses that are deductible as per IRS guidelines, such as transportation expenses (airfare, taxi, etc) and 50% of meal expenses. Let's say Peggy spent $500 on transportation and $500 on meals during the trip (excluding vacation days).

Total deductible expenses = $1600 + $500 + $250 (50% of $500) = $2350

Therefore, Peggy's deductible expenses are $3,100 (including transportation and meal expenses). The correct choice is (C).

During the Year, Peggy Went from Nashville to Quito (Ecuador)