Problem 9-25 (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	$800
Lodging (8 nights)	1,040
Meals at local restaurants (8 days)	960
Airport transportation	110

Assume lodging/meals are the same amount for the business and personal portion of the trip ($130 per day for lodging and $120 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
Lodging
Meals
Transportation
Total

What amount may she deduct on her tax return? ______

b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be _____ and the expenses would be classified as

a deduction for AGI or an itemized deduction

.