During the year, Michael went from Raleigh to San Diego on business. Preceding a five-day business meeting, he spent four days vacationing at the beach. Excluding the vacation costs, his expenses for the trip are as follows:
Air fare $3,200
Lodging 900
Meals 800
Entertainment 600
Presuming no reimbursement, deductible expenses are:
a. $5,500.
b. $3,900.
c. $3,200.
d. $4,800.
e. None of these choices are correct.
d. $4,800.
Feedback: $3,200 + $900 + $700 [50% ($800 + $600)] = $4,800. No allocation is required for domestic transportation costs (i.e., the airfare) since the trip is primarily business

Reimbursement is the act of compensating a person for an out-of-pocket expense via way of means of giving them an amount of cash identical to what become spent. Companies, governments and nonprofit companies may also compensate their employees or officials for essential and affordable charges; under US regulation, those charges may also be deducted from taxes via way of means of the enterprise and handled as untaxed profits for the recipient supplied that duty situations are met. UK regulation gives for deductions for tour and subsistence. Reimbursement is likewise supplied for supply, day care, mobile, scientific, or schooling charges, as decided via way of means of the payer. Similarly, a university, educational conference, or commercial enterprise conference may also reimburse the charges of an invited speaker or attendee.

Reimbursement is likewise utilized in insurance, whilst a company will pay for charges once they were paid without delay via way of means of the coverage holder or any other party.

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