Danny Owns an Electronics Outlet in Dallas

question 115

Essay

Danny owns an electronics outlet in Dallas. This year, he paid $600 to register for a four-day course in management in Chicago. Danny paid $800 in airfare and $1,000 for five nights' lodging. After the course, Danny spent the last day sightseeing. During the trip, Danny also paid $140 a day for meals, and $80 a day for a rental car. What amount of these travel expenditures may Danny deduct as business expenses?

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Definitions:

Effective Rate

The actual interest rate an individual earns or pays on an investment or loan, taking into account the effect of compounding.

Semi-annually Compounded

This refers to the process of applying interest to a principal balance twice a year, effectively increasing the amount of interest earned or paid over time.

Rate of Return

The profit or deficit incurred on an investment during a certain timeframe, represented as a proportion of the investment's original price.

Maturity Date

The date on which the principal and accrued interest on an investment or loan are due.