Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: $ 9,360 X Actual Cost Method: 6,850 Which method should Marc use? Standard mileage
Round business use to the two decimal percentages. If required, round your answers to the nearest dollar. Standard Mileage Method: $ 9,360 X Actual Cost Method: 6,850 Which method should Marc use? Standard mileage
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 46P
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Question
Transcribed Image Text: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
$2,061
6,850
92
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.
Which method should Marc use?
Standard mileage
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: $ 9,360 X
Actual Cost Method:
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