Tom Is Employed by a Large Consulting Firm

question 31

Essay

Tom is employed by a large consulting firm.His employer has an accountable expense reimbursement plan.Tom paid for $3,000 of travel expenses which were directly reimbursed under the plan.How will the travel expenses be treated in Tom's tax return?

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Definitions:

Framing

The way information is presented to us which can influence our decisions and judgments.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used.

Restructuring

Thinking about a problem in a new way in order to solve it.

Using Analogies

The process of explaining a concept or idea by comparing it with something else that is more familiar or easier to understand.