Instructions : Choose the best multiple choice answer and explain why you chose
ID: 2564280 • Letter: I
Question
Instructions : Choose the best multiple choice answer and explain why you chose the answer. MUST provide 2-3 sentence brief explanation and show all work. All sources must be noted.
____ 30. During the year, Jon travels from Raleigh to Addis Ababa, Ethiopia on business. His time was spent as follows: 2 days travel (one day each way), 2 days business, and 2 days personal. His expenses for the trip were as follows (meals and lodging reflect only the business portion):
Air fare
$3,000
Lodging
2,000
Meals and entertainment
1,000
Presuming no reimbursement, Jon’s deductible expenses are:
a.
$6,000.
b.
$5,500.
c.
$4,500.
d.
$3,500.
e.
None of the above.
Air fare
$3,000
Lodging
2,000
Meals and entertainment
1,000
Explanation / Answer
Ans: A) $6000
Reason: As per IRS publication 463 ,as Jon was no trp for less than 7 days so entire expenses will be deductible. Thus full $6000 will be deductible. ($3000+2000+1000)