Lynn Is a Sales Representative for Textbook Publishing Company

question 141

Multiple Choice

Lynn is a sales representative for Textbook Publishing Company. He receives a monthly travel allowance from Textbook to cover his travel costs (transportation, food, lodging, entertainment, etc.) . If Lynn is not required to account to Textbook for the use of the travel advance
I.Lynn will not have to show any aspect of the travel reimbursement or expenses incurred if he spends all of the reimbursement on valid travel expenses.
II.To the extent Lynn is reimbursed for his costs he will get a deduction for AGI.​

• 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:

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