Carlos Drives to Oregon to Consult with a Client

question 74

Multiple Choice

Carlos drives to Oregon to consult with a client. He works for 1 day and spends 3 days enjoying Oregon since the consultation was right before a 3-day weekend. His expenses were $175 to drive to Oregon and back, $600 for lodging, $50 for food on the day that he worked, and $125 for food on the other 3 days. How much of his travel expenses are deductible?

• A)$0
• B)$175
• C)$200
• D)$350
• E)$800

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Definitions:

Journal Entry

A journal entry is a record of a financial transaction in the accounting system of a business, consisting of debit and credit entries to maintain the double-entry bookkeeping system.

Federal Income Tax

The tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Dividend Income

Earnings distributed to shareholders from a portion of the company's earnings.

Rental Income

Earnings received from renting out property or equipment, often considered a stable source of income.