Question

Required information [The following information applies to the questions displayed below.] Melissa recently paid $775 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $390 fee to register for the conference, $360 per night for three nights' lodging, $170 for meals, and $485 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.) 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? Deductible amount

Answer 1

COMPUTATION OF DEDUCTIBLE EXPENSE

Amount	Explanation	Deductible Expense
$775	Since Melissa made trip to San Francisco to visit national parks and business conference was incidental benefit, therefore Airfare is not a deductible expense	$0
$390	Registration fees is deductible expense	$390
$360	Lodging fees per night is also deductible expense ($360 X 3 nights) = $1080	$1080
$170	50% of meals expense is deductible ($170 X 50%) = $85	$85
$485	Cab fare is deductible expense	$485
	TOTAL DEDUCTIBLE EXPENSE	$2040