Frank Fronton decided to become a professional jai alai player. In January, Fronton joined a jai alai club where he could train to become a jai alai player. After training for the first 7 months of the year, Fronton received a contract and began to play professionally as an independent contractor; however, he continued to use the club for ongoing training and practice. Fronton paid $12,000 for the use of the club during the year ($1,000 per month). He purchased equipment in January costing $1,500. Replacement equipment after receiving the contract cost $500, and transportation to out-of-town games cost $800 for the remainder of the year. How much can Fronton deduct as business expenses?

Respuesta :

Answer:

$6,300

Explanation:

The computation of expenses that can be deducted is shown below:-

Expenses that can be deducted = Fee paid for club after getting contract(for 5 months) + Replacement cost + Travelling

= ($1,000 × 5) + $500 + $800

= $6,300

Therefore for computing the expenses that can be deducted we simply add  Fee paid for club after getting contract, replacement cost and travelling and the rest amount is not relevant for computation.