Mona works for Leonardo Corporation as a sales representative. Leonardo gives her a travel allowance of $350

Question:

Mona works for Leonardo Corporation as a sales representative. Leonardo gives her a travel allowance of $350 per month. During the current year, she spends the following amounts on valid travel expenses:

Transportation .. $2,700

Meals ....... 1,200

Lodging ...... 1,800

Entertainment ... 300

How should Mona treat the $350 per month travel allowance and the travel costs she incurs if

a. Leonardo’s reimbursement plan is an accountable plan?

b. Leonardo’s reimbursement plan is a nonaccountable plan?

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...