Paul is employed and drives to and from his office 5 days a week. He also has a side catering business evenings and weekends based out of his home which he reports on Schedule C. Annual mileage information is summarized below: Commuting from home to office Total miles for catering from home to various jobs Total other personal miles driven during the year 2,600 miles 1,700 miles 3,100 miles In addition, Paul pays parking fees of $200 and tolls of $40 for related to the catering business, plus $300 parking fees related to his employment for which he is not reimbursed by his employer. Calculate Paul's deduction for use of his auto during 2021 using the automatic mileage method: a. Paul has business miles for the year. b. Paul will use a mileage rate of c. Paul's total deduction for use of his vehicle is per business mile.
Paul is employed and drives to and from his office 5 days a week. He also has a side catering business evenings and weekends based out of his home which he reports on Schedule C. Annual mileage information is summarized below: Commuting from home to office Total miles for catering from home to various jobs Total other personal miles driven during the year 2,600 miles 1,700 miles 3,100 miles In addition, Paul pays parking fees of $200 and tolls of $40 for related to the catering business, plus $300 parking fees related to his employment for which he is not reimbursed by his employer. Calculate Paul's deduction for use of his auto during 2021 using the automatic mileage method: a. Paul has business miles for the year. b. Paul will use a mileage rate of c. Paul's total deduction for use of his vehicle is per business mile.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give answer in image
Transcribed Image Text:Paul is employed and drives to and from his office 5 days a week. He also has a side catering business evenings and weekends based out of his home which he reports on Schedule C.
Annual mileage information is summarized below:
Commuting from home to office
Total miles for catering from home to various jobs
Total other personal miles driven during the year.
2,600 miles
1,700 miles
3,100 miles
In addition, Paul pays parking fees of $200 and tolls of $40 for related to the catering business, plus $300 parking fees related to his employment for which he is not reimbursed by his
employer.
Calculate Paul's deduction for use of his auto during 2021 using the automatic mileage method:
a. Paul has
business miles for the year.
b. Paul will use a mileage rate of
c. Paul's total deduction for use of his vehicle is
PLEASE DO NOT ENTER ANY COMMAS OR YOUR OTHERWISE CORRECT ANSWER WILL BE MARKED WRONG! ENTER THE NUMBER 0 FOR ZERO, NOT THE WORD ZERO OR NONE AND
NOT THE LETTER O. BE SURE TO ENTER YOUR MILEAGE RATE AS A DECIMAL, RATE PER MILE. If the mileage rate is 40 cents per mile, enter 0.40
per business mile.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education