Ariana is a self-employed Instacart driver who works out of their home. Ariana does not have a designated work vehicle. During 2021, Ariana drove their vehicle 15,430 miles for business, and 5,467 miles for personal use. Other costs associated with the vehicle for the year were: Operating expenses (depreciation, oil, gas, license, insurance, repairs...) business-related tolls and parking fees $15,000 Documented -$139 Interest expense on the loan for the vehicle $284 How much will Ariana deduct as a business expense for using this vehicle under each method? O a) Standard rate $20,089; Actual cost $11,449

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ariana is a self-employed Instacart driver who works out of their home. Ariana does not have a designated
work vehicle. During 2021, Ariana drove their vehicle 15,430 miles for business, and 5,467 miles for
personal use. Other costs associated with the vehicle for the year were:
Operating expenses (depreciation, oil, gas, license, insurance, repairs...)
business-related tolls and parking fees
- S15,000 Documented
$139 Interest expense on the loan for the
vehicle
-$284
How much will Ariana deduct as a business expense for using this vehicle under each method?
O a) Standard rate $20,089; Actual cost = $11,449
b) Standard rate $11,449; Actual cost = $8,989
c) Standard rate $8,989; Actual cost $11,449
%3D
%3D
d) Standard rate $8,640; Actual cost = $11,100
%3D
!3!
Transcribed Image Text:Ariana is a self-employed Instacart driver who works out of their home. Ariana does not have a designated work vehicle. During 2021, Ariana drove their vehicle 15,430 miles for business, and 5,467 miles for personal use. Other costs associated with the vehicle for the year were: Operating expenses (depreciation, oil, gas, license, insurance, repairs...) business-related tolls and parking fees - S15,000 Documented $139 Interest expense on the loan for the vehicle -$284 How much will Ariana deduct as a business expense for using this vehicle under each method? O a) Standard rate $20,089; Actual cost = $11,449 b) Standard rate $11,449; Actual cost = $8,989 c) Standard rate $8,989; Actual cost $11,449 %3D %3D d) Standard rate $8,640; Actual cost = $11,100 %3D !3!
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