Pat Is a Sales Representative for a Publishing Company

question 39

Essay

Pat is a sales representative for a publishing company.He entertains customers as part of his job.During the current year he spends $10,000 on business entertainment.The company reimburses him $5,000.Before consideration of the entertainment costs and the reimbursement,Pat earns AGI of $100,000,and he has itemized deductions of $12,000 due to mortgage interest and taxes.Pat is single,with no dependents.What is Pat's taxable income
a.assuming the employer maintains an accountable plan?
b.assuming the employer does not maintain an accountable plan?

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Definitions:

Self-esteem

A person's personal assessment of their own worth or value, based on their feelings and emotions.

Youthfulness

The state or quality of being young, often characterized by energy, freshness, or vitality.

Endogamy

The tendency of people to marry within their own social group.

Socioeconomic Status

A measure of an individual's or group's economic and social position based on income, education, and occupation.