Kim works for a clothing manufacturer as a dress designer. During 2022, 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 Lodging (8 nights) Meals at local restaurants (8 days) Airport transportation Airfare 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 "o". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Lodging Meals Transportation Total $800 1,040 960 75 What amount may she deduct on her tax return? The deductible expenses would be $ b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? and the expenses would be classified as
Kim works for a clothing manufacturer as a dress designer. During 2022, 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 Lodging (8 nights) Meals at local restaurants (8 days) Airport transportation Airfare 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 "o". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Lodging Meals Transportation Total $800 1,040 960 75 What amount may she deduct on her tax return? The deductible expenses would be $ b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? and the expenses would be classified as
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mm.16.
Subject :- Account
Transcribed Image Text:Kim works for a clothing manufacturer as a dress designer. During 2022, 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
Lodging (8 nights)
Meals at local restaurants (8 days)
Airport transportation
Airfare
Lodging
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 "o". If required, round all interim calculations to nearest dollar.
a. Determine Kim's business expenses, presuming no reimbursement.
Meals
Transportation
Total
$800
1,040
960
75
The deductible expenses would be $
What amount may she deduct on her tax return?
$
b. Would the tax treatment of Kim's deduction differ if she was an Independent contractor?
and the expenses would be classified as
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