Melissa recently paid $700 for round-trip airfare to San Francisco to attend a b
ID: 2516253 • Letter: M
Question
Melissa recently paid $700 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $705 fee to register for the conference, $385 per night for three nights’ lodging, $235 for meals, and $480 for cab fare. (Leave no answers blank. Enter zero if applicable.) (Round your answer to the nearest dollar amount.)
d. Suppose that Melissa’s permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $705 for the registration fee. She drove 156 miles over the course of three days and paid $177 for parking at the conference hotel. In addition, she spent $430 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel and she bought dinner on her way home each night from the conference. What amount of the travel costs can Melissa deduct as business expenses? (Use standard mileage rate. Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
*Must use 2018 standard milage rate*
Explanation / Answer
Solution:
Calculation of Amount of the Travel Costs Can Melissa Deduct as Business Expenses:
Business Expenses can be Calculated as follows:
Mileage Deduction (156 Miles * 0.5451)
(1) According to the 2018, the Standard milage rate is 54.5%.
Therefore, the Amount of the Travel Costs Can Melissa Deduct as Business Expenses is $967.02.
Conference Registration $705Mileage Deduction (156 Miles * 0.5451)
$85.02 Parking Fees $177 Total $967.02