Mikey Is a Self-Employed Computer Game Software Designer

question 67

Multiple Choice

Mikey is a self-employed computer game software designer. He takes a week-long trip to Maui, primarily for business. He takes 2 personal days at the beach. How should he treat the expenses related to this trip?

• A)None of the expenses are deductible since there was an element of personal enjoyment in the trip.
• B)100 percent of the trip should be deducted as a business expense since the trip was primarily for business.
• C)50 percent of the trip should be deducted as a business expense.
• D)The cost of all of the airfare and the expenses related to the business days should be deducted, while the expenses related to the personal days are not deductible.

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Definitions:

Large Corporation

A significant-sized company that operates usually across multiple countries, having considerable influence and financial turnover.

Paid

The status of having received money in exchange for goods or services, or as compensation for work done.

State Revenue

The total income generated by a government from taxes, fees, and governmental activities to fund public services and initiatives.

Local Revenue

Funds generated by taxes, fees, and other charges that are collected by local governments to finance public services and infrastructure.