Chapter 3: Business Income and Expenses, Part IPlease address the following:1. Robert, a new client of yours, is a self-employed caterer in Santa Fe, New Mexico. Robert drives his personal van when delivering catered meals to customers. You have asked him to provide the amount of businessmiles driven using his vehicle. You are planning on using the standard mileage method to calculate Robert's deduction for transportation costs. Robert has responded by saying, "Well, I don't really keep track of mymiles. I guess I drove around 3,000 miles last year for the business." Please let us know how you would respond to Robert.2. Your supervisor has asked you to research a potential tax deduction for a client, Nancy Fradette. Nancy is a seat-filler at a number of the award shows that are filmed in the greater Los Angeles area. Although typicallyseat-fillers are not compensated, Nancy is so good at the job that many of the events are willing to pay for her services. As a result, her level of seat-filling activity now rises to the level of a business, not just a hobby.In 2020, Nancy is hoping to take a trip to the National Award Show Association (NASA) Annual Conference being held in Koror, Palau, a small island country in the Pacific. Although the conference is specificallyfocused on the presentation of award shows, a large number of the producers of these shows attend each year. Nancy wanted to attend so she could understand the challenges an award show producer faces and thusbetter perform her seat-filler job. The conference is held in a remote location each year as award show producers generally prefer a high level of secrecy around the inner-workings of the shows, and the scuba-divingand weather are also pretty good. The costs to attend the conference are $1,200 for conference registration, $2,300 for air travel, $2,400 for lodging. All the meals are included in the cost of the registration and arevalued at $400. Please prepare a letter to Nancy that describes the issues that Nancy will face in trying to deduct the cost of this trip. Use IRS Publication 463 (available at www.irs.gov) to assist you.

In the case of Robert, there are two methods to use for standard transportation cost deduction. That…

Answered: Robert, a new client of yours, is a…

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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Melissa recently paid $400 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $250 fee to register for the conference, $300 per night for three nights' lodging, $200 for meals in restaurants, and $150 for cab fare. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable.
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R, a new client of yours, is a self employed catere. R drives his personal van when delivering catered meals to customers. You asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate R deduction for transportation costs. R responded by saying " well, I don't keep track of my miles. I guess I drove around 3000 miles last year for the business " What would you say to him?
[The following information applies to the questions displayed below] Melissa recently paid $695 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $500 fee to register for the conference, $320 per night for three nights' lodging, $150 for meals in restaurants, and $610 for cab fare. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable.). Problem 9-49 Part-c (Algo) c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense? Answer is complete but not entirely correct. Deductible amount $ 2,840
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