During the Current Year,Harry,a Self-Employed Accountant,travels from Kansas City to Miami

question 7

Multiple Choice

During the current year,Harry,a self-employed accountant,travels from Kansas City to Miami for a 1-week business trip.While in Miami,Harry decides to stay for an additional 5 days of vacation.Harry pays $600 for airfare,$200 for meals,and $500 for lodging while on business.The cost of meals and lodging while on vacation was $300 and $500,respectively.How much may Harry deduct as travel expenses for the trip?

• A)$600
• B)$1,100
• C)$1,200
• D)$1,300
• E)None of the above

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Definitions:

Investment Center

An investment center is a business unit within an organization that is responsible for its own revenue, expenses, and investments, and its performance is assessed based on return on investment.

Performance Report

A document that compares actual operational or financial results to planned or budgeted results.

Cost Center

A department or unit within an organization that does not directly add to profit but still incurs costs.

Departmental Contribution To Overhead

The amount of money that each department contributes towards covering the company's indirect costs or overheads.