Question

[The following information applies to the questions displayed below.) Melissa recently paid $530 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $585 fee to register for the conference, $275 per night for three nights' lodging, $210 for meals, and $620 for cab fare. (Leave no answers blank. Enter zero if applicable. Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) a. What amount of these costs can Melissa deduct as business expenses? Deductible amount

Answer 1

a.

Round trip airfare	530
Conference registration fees	585
3 nights lodging 275*3	825
Meals (210*50%)	105
Cab fare	620
Total deduction	2665

b.Only business expenses and no expense in personal will be allowable. Hence, deduction will be still at $ 2665.

c. SInce Melissa primarily went for visiting national parks,Air fare will not be deductible as business expense.

So, Total Airfare deductible = NIL

And Total expenses deductible = 2665 - 530 = 2135

d.

Registration fee	585
Mileage (155*0.58)	89.9
Parking	98
Total deductible	772.9

Please comment in case of any query regarding the solution