Problem 9-25 (Algorithmic) (LO. 1, 3, 5) 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 $1,800 Lodging (8 nights) 2,340 Meals at local restaurants (8 days) 2,160 Airport transportation 130 Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and $270 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 1,800 Lodging 1,465 Meals 1,350 Transportation 130 Total 4,743 What amount may she deduct on her tax return? 4,743 b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ 4,743 and the expenses would be classified as an itemized deduction

Problem 9-25 (Algorithmic) (LO. 1, 3, 5) 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 $1,800 Lodging (8 nights) 2,340 Meals at local restaurants (8 days) 2,160 Airport transportation 130 Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and $270 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 1,800 Lodging 1,465 Meals 1,350 Transportation 130 Total 4,743 What amount may she deduct on her tax return? 4,743 b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ 4,743 and the expenses would be classified as an itemized deduction

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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