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:
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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 can deduct expenses for the four days on business and two days on travel. According to IRS rules, the standard per diem rate for Lima, Peru is $240, which includes lodging ($162) and meals and incidental expenses ($78). Therefore, Sophie's deductible expenses are:

4 days x $240 = $960 (for business)
2 days x $240 = $480 (for travel)

Total deductible expenses = $960 + $480 = $1,440.

Therefore, the correct option is B) $3,100, which includes Sophie's deductible expenses along with her vacation costs.

During the Year,Sophie Went from Omaha to Lima (Peru) on Business.She