Given:
Distance = 5,000 miles to 10,000 miles = 5,000 miles + 500 miles (business related seminars)
Airfare = $300
To find:
Deductible transportation expense
Solution:
The following is the calculation of the deductible transportation expense,
[tex]\text{Deductible transportation expense}=5500 \text{ business miles}\times5.5 \text{ cents per mile}+300=30,550 \text{ cents}[/tex]
Deductible transportation expense = 30,550 cents = $305.5
Therefore, the deductible transportation expense for Ricki is $305.5.