Question

33. LO.1 Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following Problems expenses are incurred during the trip:

registration: (Amos)$900, (Monica)$900

Airfare: (Amos)$1,200, (Monica)$700

Taxi fares: (Amos)$100, (Monica)$0

Lodging: (Amos)$750 (Monica)$300

a. Amos pays for all of these expenses. Calculate the effect of these expenses on Amos’s AGI

b. Explain whether or not your answer to part (a) change if the American Bar Association had sponsored the conference?

Answer 1