Harley's employer gave him $5,000 to cover expenses for an upcoming sales trip. He is not required to provide any receipts for his expenses, and if his actual expenses are less than $5,000, he does not have to return any money to his employer. His actual expenses for the trip were as follows: Airfare and rental car $2,000 Meals $1,500 (not purchased in restaurants] Hotel $1,000 Tickets to theater for a client and him $200 Total $4,700 What the income tax consequences to Harley and his employer? Harley: 53,750 of non-taxable reimbursed expenses, 51.250 of wage income, and pays half the FICA tax on the wage income Employer Deductible expenses for airfare (52,000), meals (5750), hotel (51,000), entertainment (200) wage expense of $300 and pays half the FICA tax on the wage expense o Harley 54,700 of non-taxable reimbursed expenses, 5300 of wage income, and pays half the FICA tax on the wage income Employer Deductible expenses for airfare (52,000), meals (5750), hotel (51,000), wages (5500); and pays half the FICA tax on the wage expense Harley: 54,500 of non-taxable reimbursed expenses, 5500 of wage income, and pays half the FICA tax on the wage income Employer: Deductible expenses for airfare (52,000) mesls (51.500) hotel (51,000) wage expense of $500 and pays half the FICA tax on the wage expense o Harley 55,000 of wage income and pays half the FICA tax Employer 55.000 of wage expense and pays half the FICA tax