Melissa recently paid $625 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following...
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Melissa recently paid $625 for round-trip airfare to San Francisco to attend a business conference for three

days. Melissa also paid the following expenses: $405 fee to register for the conference, $360 per night for three night’s lodging, $280 for meals, and $240 for cab fare.


a. What amount of the travel costs can Melissa deduct as business expenses? (Round your answer to the nearest dollar amount.)




b.

Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses? (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? (Round your answer to the nearest dollar amount.)




d.

Suppose that Melissa’s permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $405 for the registration fee. She drove 117 miles over the course of three days and paid $152 for parking at the conference hotel. In addition, she spent $625 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel and she bought dinner on her way home each night from the conference. What amount of the travel costs can Melissa deduct as business expenses? (Round your final answer to the nearest whole dollar amount.)


Top Answer

a) Cost of round-trip air fare = $625. the total costs of air fare are deducted. The costs of reasonable and necessary... View the full answer

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