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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.

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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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.
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.
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