During the Year, Sophie (A Self-Employed Marketing Consultant) Went from Omaha

question 93

Multiple Choice

During the year, Sophie (a self-employed marketing consultant) went from Omaha to Lima (Peru) on business. She spent four days on business, two days on travel, and four days on vacation. Disregarding the vacation costs, Sophie's expenses are:
Sophie's deductible expenses are:

• A) $4,300.
• B) $2,900.
• C) $2,800.
• D) $2,500.
• E) None of these.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or expenditure), revealing the percentage of income paid in taxes.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity in a given tax period.

Taxable Income

The amount of income that is used to calculate an individual or a corporation's income tax due, after all deductions and exemptions.

Federal Unemployment Compensation

Financial assistance provided by the federal government to individuals who have lost their jobs.