Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion showsand then spends three days sightseeing. Her expenses are as follows:Airfare$800Lodging (8 nights)1,040Meals at local restaurants (8 days)960Airport transportation110Assume lodging/meals are the same amount for the business and personal portion of the trip ($130 per day for lodging and $120 per dayfor meals).If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar.a. Determine Kim's business expenses, presuming no reimbursement.Airfare800Lodging650Meals600Transportation110Total2,160What amount may she deduct on her tax return?0

Solution:- a)Calculation of Kim's Business Expenses as follows under:-

If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 800 Lodging 650 Meals 600 Transportation 110 Total 2,160 What amount may she deduct on her tax return?

If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 800 Lodging 650 Meals 600 Transportation 110 Total 2,160 What amount may she deduct on her tax return?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows
and then spends three days sightseeing. Her expenses are as follows:
Airfare
$800
Lodging (8 nights)
1,040
Meals at local restaurants (8 days)
960
Airport transportation
110
Assume lodging/meals are the same amount for the business and personal portion of the trip ($130 per day for lodging and $120 per day
for meals).
If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar.
a. Determine Kim's business expenses, presuming no reimbursement.
Airfare
800
Lodging
650
Meals
600
Transportation
110
Total
2,160
What amount may she deduct on her tax return?
0

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