Ernest Went to Boston to Negotiate Several New Contracts with Clients

question 96

Multiple Choice

Ernest went to Boston to negotiate several new contracts with clients. His airfare was $400 and he spent $150 per day on lodging, $40 per day on meals, and a total of $60 on cab fare.
I.If Ernest spends 2 days on business and 3 days on personal activities, he can deduct $160 of his airfare.
II.If Ernest spends 3 days on business and 2 days on personal activities, he can deduct $120 of the meal costs.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 aimed at promoting economic competition by prohibiting monopolies, cartels, and other forms of anticompetitive practices.

Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service to different customers, based on their willingness to pay.

Disneyland

A globally recognized theme park brand, known for its entertainment complexes that blend imaginative attractions with characters from Disney movies.

Southern California

A geographical and cultural region in the southwestern part of the U.S. state of California.