final exam score:
final exam status:
100%
Question 1
Correct
Kelly goes out of town on business for six days to a city listed as a low-cost locality. Her employer uses the high-low substantiation method. Kelly’s employer reimburses her $180 per day for each of the six days of travel ($120 for lodging and $60 for meals and incidentals). The per diem rate for a low-cost locality is $163 ($111 for lodging and $52 for meals and incidentals). What amount is the amount of substantiated travel in this scenario?
$180
$163
$1080
(You Answered) (Correct Answer) $978
Question 2
Correct
Tonya Redman’s employer advances her $1,500 from an accountable reimbursement plan to cover Tonya’s costs at a weeklong convention in Miami, Florida. Upon her return, Tonya turns in $1,250 of receipts to her employer and does not return the excess. What amount must Tonya’s employer include as additional taxable wages on her Form W-2, and what is the amount of substantiated business travel?
$0 and $0
(You Answered) (Correct Answer) $250 and $1,250
$250 and $1,500
$0 and $1,500
Question 3
Correct
Tony’s employer advances him $2,500 from an accountable reimbursement plan to cover his costs at a weeklong conference in Seattle, Washington. Upon his return, Tony turns in $2,150 of receipts to his employer, and returns the $350 excess to his employer. Which party is entitled to the travel expense deduction and what amount can that party deduct, assuming meals and entertainment expenses were not separately stated?
(You Answered) (Correct Answer) Tony’s employer is entitled to a travel expense deduction of $2,150
Tony is entitled to a travel expense deduction of $2,150
Tony is entitled to a travel expense deduction of $2,500
Tony’s employer is entitled to a travel expense deduction of $2,500
Question 4
Correct
To deduct business meal and entertainment expenses, the taxpayer must be able to substantiate all of the following elements of the expense except:
The date, time, and place the expense was incurred
(You Answered) (Correct Answer) Incidental expenses such as taxis, telephone calls, etc.
The business purpose and the business benefit expected to be derived
The business relationship to the taxpayer
Question 5
Correct
For which of the following expenditures is a self-employed taxpayer not required to keep documentary evidence of the actual amount spent in order to claim a deduction on the taxpayer’s tax return?
Lodging costing $70
Meals costing $90
(You Answered) (Correct Answer) Theater tickets costing $65
Transportation costing $100