In June of this year, Dr. and Mrs. Bret Spencer traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Bret, a self-employed practicing oral surgeon, participated in scheduled technical sessions dealing with the latest developments in surgical procedures. On two days, Mrs. Spencer attended group meetings where various aspects of family tax planning were discussed. On the other day, she went sightseeing. Mrs. Spencer does not work for her husband, but she prepares their tax returns and handles the family investments. Expenses incurred in connection with the conference are summarized below. Airfare (two tickets) $2,000 Lodging (single and double occupancy are the same rate—$250 each day) 750 Meals ($200 x 3 days)* 600 Conference registration fee (includes $120 for Family Tax Planning sessions) 620 Car rental 300 *Split equally between Dr. and Mrs. Spencer. If an amount is zero, enter "0". If required, round your interim calculations to nearest dollar. How much, if any, of these expenses can the Spencers deduct? Mrs. Spencer's activities constitute a trade or business. Therefore, she can deduct $fill in the blank 2 of her expenses. Bret's deductible expenses are: Airfare (one ticket) $fill in the blank 3 Lodging fill in the blank 4 Meals $fill in the blank 5 Less: meals limitation fill in the blank 6 fill in the blank 7 Registration fee fill in the blank 8 Car rental fill in the blank 9 Total $fill in the blank 10

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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Problem 9-25 (LO. 3, 5)

In June of this year, Dr. and Mrs. Bret Spencer traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Bret, a self-employed practicing oral surgeon, participated in scheduled technical sessions dealing with the latest developments in surgical procedures. On two days, Mrs. Spencer attended group meetings where various aspects of family tax planning were discussed. On the other day, she went sightseeing. Mrs. Spencer does not work for her husband, but she prepares their tax returns and handles the family investments. Expenses incurred in connection with the conference are summarized below.

Airfare (two tickets)	$2,000
Lodging (single and double occupancy are the same rate—$250 each day)	750
Meals ($200 x 3 days)*	600
Conference registration fee (includes $120 for Family Tax Planning sessions)	620
Car rental	300
*Split equally between Dr. and Mrs. Spencer.

If an amount is zero, enter "0". If required, round your interim calculations to nearest dollar.

How much, if any, of these expenses can the Spencers deduct?

Mrs. Spencer's activities constitute a trade or business. Therefore, she can deduct $fill in the blank 2 of her expenses.

Bret's deductible expenses are:

Airfare (one ticket)		$fill in the blank 3
Lodging		fill in the blank 4
Meals	$fill in the blank 5
Less: meals limitation	fill in the blank 6	fill in the blank 7
Registration fee		fill in the blank 8
Car rental		fill in the blank 9
Total		$fill in the blank 10

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