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Problem 9-31 (Algorithmic) (LO. 1, 3, 5) Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City
Problem 9-31 (Algorithmic) (LO. 1, 3, 5) Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $2,300 Lodging (8 nights) 2,990 Meals at local restaurants (8 days) 2,760 Airport transportation 115 Assume lodging/meals are the same amount for the business and personal portion of the trip ($374 per day for lodging and $345 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 2,300 Lodging 1,869 X Meals 863 X Transportation 115 Total 5,147 x What amount may she deduct on her tax return? 5,147 x b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ 5,147 X and the expenses would be classified as a deduction for AGI
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