Your company has a travel policy that reimburses employees for the â€œordinary and necessaryâ€ costs of...

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Your company has a travel policy that reimburses employees forthe â€œordinary and necessaryâ€ costs of business travel. Employeesoften mix a business trip with pleasure by either extending thetime at the destination or traveling from the business destinationto a nearby resort or other personal destination. When thishappens, an allocation must be made between the business andpersonal portions of the trip. However, the travel policy isunclear on the allocation method to follow.
Consider this example. An employee obtained a business-classticket for $9,558 and traveled the following itinerary:
From To Miles One-Way Regular Fare Purpose
Chicago Paris 4,170 $ 3,720 Business
Paris Rio de Janeiro 5,770 4,450 Personal
Rio de Janeiro Chicago 5,290 3,100 Return
On the date of the flights between Chicago and Paris (andreturn), a restricted round-trip fare of $4,980 was available.
Required:
a. Compute the business portion of the airfareand state the basis for the indicated allocation that isappropriate according to each of the following independentscenarios:
1. Based on the maximum reimbursement for theemployee.
2. Based on the minimum cost to thecompany.

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Answer Given data From To Miles OneWay Regular Fare Purpose Chicago Paris 4170 3720 Business Paris Rio de Janeiro 5770 4450 Personal Rio de Janeiro Chicago 5290 3100 See Answer

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From	To	Miles	One-Way Regular Fare		Purpose
Chicago	Paris	4,170	$	3,720		Business
Paris	Rio de Janeiro	5,770		4,450		Personal
Rio de Janeiro	Chicago	5,290		3,100		Return

Your company has a travel policy that reimburses employees for the â€œordinary and necessaryâ€ costs of...