Monique travel & entertainment: for AGI or from AGI
Not what you're looking for?
Monique is a self-employed manufacturer's representative who solicits business for clients and receives a commission based on sales. She incurs the following expenditures during the current year:
Airfare and lodging while away from home overnight $ 4,000
Business meals while traveling at which business is discussed 1,000
Local transportation costs for automobile,parking, tolls, etc. (business-related) 2,000
Commuting expenses 1,000
Local entertainment of customers 2,000
Total: 10,000
a. Which of the expenditures listed above (if any) are deductible by Monique?
b. Are each of these items classified as for AGI or from AGI deductions?
c. How would your answers to Parts a and b change if Monique were an employee rather than self-employed and none of the expenses were reimbursed by her employer?
Purchase this Solution
Solution Summary
The solution clearly explains the difference in the type of expenses allowable for AGI and from AGI. Non-deductible or limited deductions are also shown.
Solution Preview
a. As a self employed person, Monique will report her earnings and expenses on Schedule C. The deductible expenses are:
Airfare and lodging while away from home overnight = $4,000
Business meals while traveling at which business is discussed 1,000 x 50% = $500
Local transportation costs for automobile, parking, tolls, etc. (business-related) = ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.