Alvin is an employee of York Company. During the year, he incurs the following employment-related expenses: Travel

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Alvin is an employee of York Company. During the year, he incurs the following employment-related expenses:

Travel ...... $ 4,000

Meals ..... 2,400

Lodging ..... 2,500

Entertainment .. 1,100

a. How should Alvin treat these expenses if York Company has an accountable employee business expense reimbursement plan and Alvin is reimbursed

$9,000?

$10,000?

$11,000?

b. How would your answer to part a change if York’s reimbursement plan were non-accountable?

c. How would your answer to part a change if Alvin were self-employed (i.e., receiving no reimbursements)?


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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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