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Mona works for Leonardo Corporation as a sales representative. Leonardo gives her a travel allowance of $460 per month. During 2018, she spends the following
Mona works for Leonardo Corporation as a sales representative. Leonardo gives her a travel allowance of $460 per month. During 2018, she spends the following amounts on valid travel expenses: Transportation $3,600 Meals 1,200 Lodging 2,100 Complete the statements below based on whether Leonardo has an accountable or nonaccountable plan. a. If Leonardo's reimbursement plan is an accountable plan, Mona must include the reimbursement in gross income. Mona is allowed a deduction for adjusted gross income for the s of reimbursed expenses. The $ of unreimbursed expenses are not deductible as miscellaneous itemized deductions. reimbursement must be included in Mona's gross income. Mona is not allowed to b. If Leonardo's reimbursement plan is a nonaccountable plan, the $ deduct any of her expenses for adjusted gross income
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