Gwen Traveled to New York City on a Business Trip

question 122

Multiple Choice

Gwen traveled to New York City on a business trip for her employer.Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area.Gwen's plane fare for the trip was $250.Meals cost $160 per day.Hotels and other incidental expenses amounted to $250 per day.Gwen was not reimbursed by her employer for any expenses.Her AGI for the year is $50,000 and she itemizes but has no other miscellaneous itemized deductions.Gwen may deduct (after limitations)

• A)$570.
• B)$890.
• C)$1,890.
• D)$1,570.

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Definitions:

Machine Intensive

A production process that heavily relies on machinery and equipment rather than manual labor for manufacturing goods or services.

Predetermined Overhead Rates

Rates used to apply manufacturing overhead to products that are calculated in advance based on estimated costs and activity levels.

Ending Inventory

is the total value of goods available for sale at the end of an accounting period, after accounting for sales and additions during the period.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time.