Thomas Changes Jobs During the Year and Moves from Philadelphia

question 3

Multiple Choice

Thomas changes jobs during the year and moves from Philadelphia to El Paso.Which of the following expenses relating to the move can Thomas deduct?
I.Prior to the move,Thomas flies to El Paso to find an apartment.
II.The cost of meals while driving his household goods to El Paso.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Indirect Materials

Materials used in the production process that cannot be directly traced to the finished product in a cost-effective manner.

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

Directing

The process in management that involves guiding, leading, and overseeing the performance of employees to achieve organizational goals.