Question

Justin Peter earned a salary of $30,000 during the current year. During the current year, he was required by his employer to take several overnight business trips, and he received an expense allowance of $1,500 for travel and lodging. In the course of these trips, he incurred the following expenses: Travel $1,100 Lodging 500 Entertainment of customers 400 What is Justin’s adjusted gross income if he does not account to his employer for the expenses? A. $29,500 B. $29,900 C. $30,000 D. $31,500

Answer 1

Answer:

$31,500

Explanation:

Given:

Earned a salary = $30,000

Expense allowance received for travel and lodging = $1,500

The expenses incurred by an employee over business expenses do not need to be deducted from gross income or included in the gross income.

Hence, the gross salary of Justin Peter  

= Earned a salary + Expense allowance received for travel and lodging

= $30,000 + $1,500

= $31,500