Shelley Is Employed in Texas and Recently Attended a Two-Day $\quad\quad\quad\quad\quad\quad\$ 2,000$

question 24

Multiple Choice

Shelley is employed in Texas and recently attended a two-day business conference in New Jersey. Shelley spent the entire time at the conference and documented her expenditures (described below) . What amount can Shelley deduct as an employee business expense? Airfare to New Jersey $\quad\quad\quad\quad\quad\quad\$ 2,000$
Meals $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad 220$
Lodging in New Jersey $\quad\quad\quad\quad\quad\quad450$
Rental car $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad180$

• A) $2,850
• B) $2,740
• C) $1,850 if Shelley's AGI is $50,000
• D) All of these are deductible if Shelley is reimbursed under an accountable plan.
• E) None of the expenses are deductible - only employers can deduct travel expenses.

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Definitions:

Model Business Corporation Act

A model set of laws prepared by legal experts to guide the states in the development of their corporation statutes.

UCC

Known as the Uniform Commercial Code, this significant body of law sets the standards for commercial transactions throughout the United States.

Uniform

Consistently the same in character or degree; in legal contexts, it often refers to laws that are the same across all jurisdictions within a certain area.

Preincorporation Contract

Agreements entered into on behalf of a corporation not yet formally established, often by its founders or promoters.