Fred's employer dispatched him on a business trip from the Dallas headquarters to New York this year.During the trip Fred incurred the following expenses: What is the amount of Fred's deduction before the application of any AGI limitations?
A)$2,870
B)$2,570
C)$2,050
D)$1,300
E)$0 - the expenses cannot be deducted unless Fred is reimbursed.

Question

Fred's employer dispatched him on a business trip from the Dallas headquarters to New York this year.During the trip Fred incurred the following expenses:  What is the amount of Fred's deduction before the application of any AGI limitations?
A)$2,870 
B)$2,570 
C)$2,050 
D)$1,300 
E)$0 - the expenses cannot be deducted unless Fred is reimbursed.

Quizplus · Accepted Answer

The total expenses incurred by Fred are:

Airfare: $1,000
Lodging: $750
Meals: $420
Transportation: $400

Total expenses = $1,000 + $750 + $420 + $400 = $2,570

Therefore, Fred's deduction before the application of any AGI limitations is $2,570.

Fred's Employer Dispatched Him on a Business Trip from the Dallas