During the current year, the Coetzer Corporation hires Marcelo, and agrees to reimburse him for all of

Question:

During the current year, the Coetzer hires Marcelo, and agrees to reimburse him for all of his moving costs. Marcelo submits the following expenses to Coetzer for reimbursement:
Transportation of household goods .... $2,700
Airfare ............... 340
Temporary living
Lodging ............... 430
Meals ................ 120
House-hunting trip:
Transportation ............ 330
Lodging ............... 280
Meals .................. 110
a. What amount can Marcelo deduct as moving costs?
b. If Marcelo is in the 28% marginal tax bracket, what is the effect of the reimbursement on his taxable income and his total tax liability?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...