Pat is a sales representative for a publishing company. He travels extensively as part of his job. During the current year he spends $10,000 on business travel. The company reimburses him $5,000. Before consideration of the travel costs and the reimbursement, Pat earns AGI of $100,000, and he has itemized deductions of $13,000 due to mortgage interest and taxes. Pat is single, with no dependents. What is Pat's taxable incomea. assuming the employer maintains an accountable plan?b. assuming the employer does not maintain an accountable plan?
What will be an ideal response?
| ? | Accountable | Nonaccountable |
| Preliminary AGI | $100,000 | $100,000 |
| Expense reimbursement | 0 | 5,000 |
| AGI | 100,000 | 105,000 |
| Taxes and interest | 13,000 | 13,000 |
| Travel costs | 0 | 0 |
| Total itemized deductions | 13,000 | 13,000 |
| Taxable income | $87,000 | $92,000 |
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