Sandra Ohm travels extensively for her employer. Her employer provides an allowance of $200 per day to cover hotel costs. In addition, she is paid $0.41 per kilometre when she is required to use her automobile for travel. For her work, during the current year, she traveled a total of 82 days and drove 9,400 kilometres. Her employer paid her $16,400 for lodging [(82)($200)], as well as $3,854 dollars for mileage [(9,400)($0.41)]. Her actual lodging costs were $18,300, while her total automobile costs were $7,200, including monthly lease payments. Her total mileage on the car during the year was 23,500 kilometres. What amounts should Ms. Ohm include and deduct in determining net employment income for the current year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sandra Ohm travels extensively for her employer. Her employer provides an allowance of $200 per day to cover hotel costs. In addition, she is paid $0.41 per kilometre when she is required to use her automobile for travel. For her work, during the current year, she traveled a total of 82 days and drove 9,400 kilometres. Her employer paid her $16,400 for lodging [(82)($200)], as well as $3,854 dollars for mileage [(9,400)($0.41)]. Her actual lodging costs were $18,300, while her total automobile costs were $7,200, including monthly lease payments. Her total mileage on the car during the year was 23,500 kilometres. What amounts should Ms. Ohm include and deduct in determining net employment income for the current year?

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