In May 2020 Jack purchased a car for $30,000 and drove it 11,000 miles during the year, all for personal reasons. If the mileage deduction rate for 2020 is 57.5 cents per mile, 27 cents of which is for depreciation, what is maximum allowable amount Jack will be able to deduct for depreciation for the car in calculating his 2020 taxable income if she uses the automatic mileage method? $6,000 $10,100 $2,970 $0 $6,325
In May 2020 Jack purchased a car for $30,000 and drove it 11,000 miles during the year, all for personal reasons. If the mileage deduction rate for 2020 is 57.5 cents per mile, 27 cents of which is for depreciation, what is maximum allowable amount Jack will be able to deduct for depreciation for the car in calculating his 2020 taxable income if she uses the automatic mileage method? $6,000 $10,100 $2,970 $0 $6,325
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In May 2020 Jack purchased a car for $30,000 and drove it 11,000 miles during the year, all for personal reasons. If the mileage deduction rate for 2020 is 57.5 cents per mile, 27 cents of which is for
$6,000
$10,100
$2,970
$0
$6,325
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