Jon is a self employed tax attorney. He and Monica, his employee, attend a conference in Houston sponsored by the American Institute of CPAs. The following expenses are incurred during the trip:

 

Jon

Monica

Conference registration

$ 750

$750

Airfare

1,200

700

Taxi fares

75

–0–

Lodging in Houston

750

300

a. Jon pays for all of these expenses. Calculate the effect of these expenses on Jon’s AGI.

b. Would your answer to part (a) change if the American Bar Association had sponsored the conference? Explain.