Question

Marshall and Hope lived in Little Rock, AR where Marshall was stationed in the Air Force for five years. He received new orders to move to Arnold Air Force Base in Tullahoma, TN. This is a permanent change of station (PCS). They decided to make a Personally Procured Move (PPM) and save the money. Marshall traveled to Tullahoma, TN in September to find a home to rent. They wanted to find a place with a good school district for their three kids. He spent $1,000 on round-trip airfare, hotel, food and rental car. Marshall and Hope spent $150 on boxes, tape, bubble wrap, and mattress bags. They paid $550 for the rental truck. Hope is afraid to drive long distances so they spent $625 to ship their second car. On December 15, 2018 Marshall and Hope packed their belongings and began driving from Little Rock, AR to Tullahoma, TN. On the way, they made a side trip to Memphis, TN and to visit family in Mississippi. Their trip took them a total of three days and two nights instead of the authorized one day for travel. The Smiths drove their rental truck a total of 600 miles. The shortest, most direct route from Little Rock, AR to Tullahoma, TN is 413 miles. They spent a total of $200 for tickets to an attraction. They spent one night at a hotel for $250 and one night with family. Marshall and Hope spent $550 on food and $375 on souvenirs. They also spent $200 on storage fees in Tullahoma, TN for items that would not fit in their new home because it was smaller. Their move was estimated to cost $1,600 and the Air Force provided $1,520 in advance. Marshall and Hope are U.S. citizens and have valid Social Security numbers. 5. How much can Marshall and Hope claim for mileage? $________. (Round to the nearest dollar.) (Do not enter dollar signs, commas, periods, or decimal points in your answer.)

6. Marshall and Hope's net financial profit from the move will be reported on:

A. Form W-2, Wage and Tax Statement B. Form 1040 Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business C. Form 1040, Schedule 1, Additional Income and Adjustments to Income D. Does not need to be reported

. How much can Marshall and Hope claim as their lodging expense. $________. (Enter only numerals. Do not enter dollar signs, commas, periods, or decimal points in your answer.)

Answer 1

5.

Claimfor mileage

Round trip 1000

Boxes 150

Rental truck 550

Total 1700/-

No claim for any attraction payments

Profit reported option C

1040 form 1 additional income

Lodging expenses

Hotel expenses 250

Food 550

Storage fee 200

Total 1000/-