Mike is an independent contractor in 2021. Mike attends a professional trade association in Los Angeles. He spends three days at the meeting and two days vacationing before the meeting. Mike's total expenses for the entire five days include the following:  Airfare to and from LA $450 Meals ($50 per day) $250 Hotel ($100 per day) $500 Entertainment of customers (business is discussed) $500 Total = $1700   a. How much can Mike deduce for business related expenses for 2021?  b. How would your answers change if Mike spend two days at the meeting and three days vacationing?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mike is an independent contractor in 2021. Mike attends a professional trade association in Los Angeles. He spends three days at the meeting and two days vacationing before the meeting. Mike's total expenses for the entire five days include the following: 

Airfare to and from LA $450

Meals ($50 per day) $250

Hotel ($100 per day) $500

Entertainment of customers (business is discussed) $500

Total = $1700

 

a. How much can Mike deduce for business related expenses for 2021? 

b. How would your answers change if Mike spend two days at the meeting and three days vacationing? 

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