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Calculate Marc's transportation expense deduction for the year under each method listed below. Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: Actual Cost Method: Which method should Marc use? Standard mileage. 8,028 X 6,910 X

Calculate Marc's transportation expense deduction for the year under each method listed below. Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: Actual Cost Method: Which method should Marc use? Standard mileage. 8,028 X 6,910 X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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< Self-Study Problem 3.3 Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 6,000 miles through June 30, 2022 and another 7,000 miles during the remainder of the year, all for business purposes. Total miles (including business miles) is 16,000. His total expenses for his automobile for the year are: Gasoline Oil changes Insurance. Tires Repairs Total The automobile cost $20,000 on January 1, and depreciation expense for the year, including business use, was $4,000. His business parking and toll fees for business amount to $327. $2,061 92 1,030 225 620 $4,028 Calculate Marc's transportation expense deduction for the year under each method listed below. Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: 8,028 X Actual Cost Method: Which method should Marc use? Standard mileage Feedback 6,910 X Check My Work Certain transportation expenses for business purposes are deductible by taxpayers. Taxpayers may deduct the actual business-related expenses of or they may be entitled to use a standard mileage rate to calculate their deduction for transportation costs. The standard mileage rate is th the operation of an automobile, such as gasoline, oil, insurance, repairs, and maintenance, as well as
Transcribed Image Text:< Self-Study Problem 3.3 Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 6,000 miles through June 30, 2022 and another 7,000 miles during the remainder of the year, all for business purposes. Total miles (including business miles) is 16,000. His total expenses for his automobile for the year are: Gasoline Oil changes Insurance. Tires Repairs Total The automobile cost $20,000 on January 1, and depreciation expense for the year, including business use, was $4,000. His business parking and toll fees for business amount to $327. $2,061 92 1,030 225 620 $4,028 Calculate Marc's transportation expense deduction for the year under each method listed below. Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: 8,028 X Actual Cost Method: Which method should Marc use? Standard mileage Feedback 6,910 X Check My Work Certain transportation expenses for business purposes are deductible by taxpayers. Taxpayers may deduct the actual business-related expenses of or they may be entitled to use a standard mileage rate to calculate their deduction for transportation costs. The standard mileage rate is th the operation of an automobile, such as gasoline, oil, insurance, repairs, and maintenance, as well as
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