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Mike incurs the following employment-related expenses in the current year: Actual automobile expenses $ 2,500 Moving expenses (deductible under Sec.
Mike incurs the following employment-related expensesin the current year:Actual automobile expenses $ 2,500Moving expenses (deductible under Sec. 217) 4,000Entertainment expenses 1,500Travel expenses (including $500 of business meals) 2,500Professional dues and subscriptions 500Total 11,000Mike’s AGI is $120,000 before any of the above expenses are deducted. None of theexpenses listed above are reimbursed by Mike’s employer. He has no other miscellaneousitemized deductions and does not use the standard deduction.a. What is the amount of Mike’s deduction for employment-related expenses?b. How are these items reported in Mike’s tax return?