LO.1 Jon is a self-employed tax attorney. He and Monica, his employee, attend a conference in Houston sponsored by the American Institute of CPAs. The following expenses are incurred during the trip:

Jon Monica Conference registration $ 750 $750 Airfare 1,200 700 Taxi fares 75 –0–

Lodging in Houston 750 300

a. Jon pays for all of these expenses. Calculate the effect of these expenses on Jon’s AGI.

b. Would your answer to part

(a) change if the American Bar Association had sponsored the conference? Explain.