Jason Travels to Miami to Meet with a Client

question 124

Multiple Choice

Jason travels to Miami to meet with a client.While in Miami,he spends 2 days meeting with his client and 3 days sightseeing.Mary,his wife,goes with him and spends all 5 days sightseeing and shopping.The cost of the trip is as follows: ​
If Jason is self-employed,what is the amount of the deduction he may claim for the trip?

• A)$- 0 -
• B)$415
• C)$490
• D)$955
• E)$1,765

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Definitions:

Prepaid Expenses

Payments made for goods or services to be received in the future, recognized as assets on the balance sheet until they are incurred.

Journal Entry

A record of financial transactions in the accounting books of a business, indicating the accounts affected and the amounts.

Credits

Refers to the accounting entries that increase liabilities or decrease assets, representing the opposite effect of debits in double-entry bookkeeping.

Liability Accounts

Accounts on a balance sheet that represent obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.