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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:

Purchasing Department

A division within a business that is responsible for acquiring goods and services that are necessary for the company's operations.

Accounting Department

The division within a business that manages financial records, processes transactions, and ensures compliance with financial regulations.

F.O.B. Shipping Point

A term used in shipping contracts indicating that the buyer is responsible for paying shipping costs and bears the risk of the goods once they are shipped by the seller.

Title Passes

Refers to the moment when ownership of goods is legally transferred from the seller to the buyer in a transaction.

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