Problem 12-46 Cost Allocation for Travel Reimbursement (LO 12-1, 7) Your company has a travel policy that reimburses employees for the "ordinary and necessary" costs of business travel Employees often mix a business trip with pleasure by either extending the time at the destination or traveling from the business destination to a nearby resort or other personal destination. When this happens, an allocation must be made between the business and personal portions of the trip. However, the travel policy is unclear on the allocation method to follow Consider this example. An employee obtained a business-class ticket for $9,692 and traveled the following itinerary: One-Way Regular Fare To Paris Rio de Janeiro Chicago Purpose From Chicago Paris Rio de Janeiro Miles 4,080 $ 3,730 Business 5,730 5,380 4,290 Personal 3,430 Return On the date of the flights between Chicago and Paris (and return), a restricted round-trip fare of $4,850 was available