Question

Melissa recently paid $625 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $405 fee to register for the conference, $360 per night for three nights’ lodging, $280 for meals, and $240 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 the travel costs can Melissa deduct as business expenses?
b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,650 for transportation, $1,035 for lodging, and $320 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses?
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?
d. Suppose that Melissa’s permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $405 for the registration fee. She drove 117 miles over the course of three days and paid $152 for parking at the conference hotel. In addition, she spent $625 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.)

Answer 1

Solution:-

a. What amount of the travel costs can Melissa deduct as business expenses:-

Deductible because the primary reason for the trip is business

2,490

Explanation:-

= 625 + 405 + (360 * 3) + (280 * 50%) + 240

= 2,490.

b:-

Since the main purpose of the trip was on for business purposes, any sightseeing would not be considered deductible. So the expenses of sightseeing are $0. The cost that are able to be deducted are the $2,490 because they are business expenses and themain purpose for the trip.

c:-

The deductible amount would be any business related expenses except or the airfare. So our deductible is $1400 because the main purpose of the trip was personal and notbusiness. $2,490 - $625 (airfare) = $1,865.

d:-

Our business expenses would be calculated as follows:-

Conference Registration	405
Mileage Deduction- (117 x $0.565)	66.105
Packing gees	152
Total travel cost that can be deducted	623.105