Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below. Melissa recently paid $435 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $680 fee to register for the conference, $270 per night for three nights' lodging, $175 for meals, and $225 for cab fare. (Leave no answers blank. Enter zero if applicable.) (Round your answer to the nearest dollar amount.) c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense? Answer is complete but not entirely correct. Deductible amoun $1,803

Explanation / Answer

Total travel costs can Melissa deduct as business expenses

= $ 435 + $ 680 + ($ 270 x 3) + ($ 175 x 50% ) + $ 225

= $ 2237

Answer C

The deductible amount would be any business related expenses except or the airfare. So our deductible is $ 1,802**. Because the main purpose of the trip was personal and not business.

** = $ 2237 - $ 435 = $ 1,802

Deductible Amount        =       $ 1,802

Answer D

Business expenses would be calculated as follows

Conference Registration                              $ 680

Mileage Deduction- (198 x $ 0.565)           $ 111

Parking Fees                                               $ 166

Total                                                          $ 957

Deductible Amount       =       $ 957

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