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?

---

Definitions:

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's products or services.

Cash Inflows

Money or its equivalent received into the business from various sources, including sales, investment income, and financing activities.

Cash Outflows

Cash Outflows refer to money leaving a business or individual's possession, typically as payments for expenses, investments, or other financial obligations.

Accounting Period

A specific time period at the end of which an organization prepares financial statements, commonly a quarter or year.