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For your assistance please CoursHeroTranscribedText: Your company has a travel policy that reimburses employees for...

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Accounting

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CoursHeroTranscribedText: Your company has a travel policy that reimburses employees for the "ordinary and necessary" costs of business travel. Employees often mix a business trip with pleasure by either extending the time at the destination or traveling from the business destination to a nearby resort or other personal destination. When this happens, an allocation must be made between the business and personal portions of the trip. However, the travel policy is unclear on the allocation method to follow. Consider this example. An employee obtained a businessclass ticket for $9,368 and traveled the following itinerary: OneWay Regular From To Miles Fare Purpose Chlcago Pans 4,180 $3,670a Busmess Paris Rio de Janeiro 5,?70 $4,410 Personal Rio de Janeiro Chicago 5,230 53,410 Return a A restricted roundtrip fare of $4,840 was avaiiable on these dates. Required: Compute the business portion of the airfare and state the basis for the indicated allocation that is appropriate Based on the minimum cost to the company

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