Ricardo, who is self-employed, uses his automobile 85% for business and during 2020 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2020 for the use of his car if he uses: If required, round your final answers to the nearest dollar. a. The actual cost method? $fill in the blank 1 b. The automatic mileage method?
Ricardo, who is self-employed, uses his automobile 85% for business and during 2020 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2020 for the use of his car if he uses: If required, round your final answers to the nearest dollar. a. The actual cost method? $fill in the blank 1 b. The automatic mileage method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ricardo, who is self-employed, uses his automobile 85% for business and during 2020 drove a total of 32,200 business miles. Information regarding his car expenses is listed below.
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What is Ricardo's deduction in 2020 for the use of his car if he uses:
If required, round your final answers to the nearest dollar.
a. The actual cost method?
$fill in the blank 1
b. The automatic mileage method?
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