Self-Study Problem 3.3 Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile that was driven 13,000 miles during 2023, 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 92 1,030 225 620 $4,028 The automobile cost $40,000 on January 1, and total depreciation for the year, including personal use, was $8,000. His business parking and toll fees for business amount to $327. 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: Actual Cost Method: Which method should Marc use? Actual cost
Self-Study Problem 3.3 Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile that was driven 13,000 miles during 2023, 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 92 1,030 225 620 $4,028 The automobile cost $40,000 on January 1, and total depreciation for the year, including personal use, was $8,000. His business parking and toll fees for business amount to $327. 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: Actual Cost Method: Which method should Marc use? Actual cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Self-Study Problem 3.3
Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile that was driven 13,000 miles during 2023, 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
92
1,030
225
620
$4,028
The automobile cost $40,000 on January 1, and total depreciation for the year, including personal use, was $8,000. His business parking and
toll fees for business amount to $327.
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:
Actual Cost Method:
Which method should Marc use?
Actual cost
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