Reference no: EM131914298

Problem

Melissa recently paid $530 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $585 fee to register for the conference, $275 per night for three night's lodging, $210 for meals, and $620 for cab fare.

a. What amount of the travel costs can Melissa deduct as business expenses?

b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1, 330 for transportation, $1, 255 for lodging, and $280 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses?

c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense?

d. Suppose that Melissa's permanent residence and business was located in San Francisco. She attended the conference in San Francisco and paid $585 for the registration fee. She drove 155 miles over the course of three days and paid $98 for parking at the conference hotel. In addition, she spent $330 for breakfast and dinner over the three days of the conference. She bought breakfast on the way to the conference hotel and she bought dinner on her way home each night from the conference. What amount of the travel costs can Melissa deduct as business expenses?