Julie Travels to Mobile to Meet with a Client If Julie Is Self-Employed, What Is the Amount of the in Mobile

question 82

Multiple Choice

Julie travels to Mobile to meet with a client. While in Mobile, she spends 4 days meeting with the client and one-day sightseeing. Her husband Harry goes with her and spends all 5 days sightseeing and playing golf. The cost of the trip is as follows:
?
$\begin{array}{ll}\text { Airfare } & \$ 540 \text { for each person. } \\\text { Lodging at hotel } & \$ 150 / \text { day (Single Occupancy Rate }=\$ 125 \text { ) . } \\\text { Meals } & \$ 75 / \text { day for each person. } \\\text { Incidental expenses } & \$ 20 / \text { day for Julie. } \$ 15 / \text { day for Harry. }\end{array}$
If Julie is self-employed, what is the amount of the deduction she may claim for the trip?

• A)$730
• B)$1,270
• C)$1,370
• D)$1,420
• E)$1,520

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Definitions:

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, covering both the Old Age, Survivors, and Disability Insurance.

Cumulative Earnings

The total amount of net income an entity has earned over its life, up to the current reporting date, not yet distributed to shareholders.

FICA-Medicare

A federal payroll (or employment) tax contribution towards Medicare, part of the FICA taxes in the United States.

Cumulative Earnings

The total amount of net income (or loss) earned by a company over a period of time, often used to measure its financial performance.